India's federal power regulator, the Central Electricity Regulatory Commission (CERC), has launched an investigation into GNA Energy, an over-the-counter (OTC) electricity trading platform, following allegations of insider trading and market manipulation. The probe is linked to a key regulatory order concerning market coupling.

This action follows an interim order issued by the Securities and Exchange Board of India (SEBI) on October 15, 2025, against two officials from CERC and executives at GNA Energy. SEBI's order alleges that these individuals traded on price-sensitive information related to the Indian Energy Exchange (IEX).

CERC stated it is responding to findings from SEBI's interim order indicating that GNA Energy's top executives had access to confidential CERC documents before a July 2025 order on market coupling was publicly released. The regulator suspects that GNA Energy may have violated power market regulations. To conduct the investigation, CERC has appointed two senior officials, tasking them with submitting a report within 21 days. While the investigation is underway, GNA Energy's registration remains valid, but CERC has warned that any violations could lead to suspension or cancellation of the platform's license.

SEBI's initial investigation revealed a significant insider trading scheme amounting to ₹173 crore involving a CERC official and trading activities related to IEX shares. In its interim order, SEBI barred eight individuals from participating in the securities market and directed them to deposit the alleged illicit gains into interest-bearing fixed deposits under SEBI's control. SEBI initiated its investigation after IEX shares experienced a sharp decline of 29.58% on July 24, 2025, immediately after CERC issued an order regarding the implementation of market coupling. This order aimed to centralize bid matching across power exchanges, reduce IEX's market dominance, and improve price discovery. The investigation was also prompted by a complaint alleging insider trading in IEX shares.

The probe focused on Yogeita S Mehra, the chief of the economics division at CERC, as the primary source of the information leak. SEBI discovered that Mehra had personal and familial connections with Bhoovan Singh, a key accused individual who had previously been her student. Singh allegedly used these connections to gain access to confidential documents, including meeting minutes and regulatory updates, which he then shared with associates like Sanjeev Kumar. Singh then disseminated the information via a WhatsApp group named 'OTC' to Narender Kumar and Sanjeev Kumar. Using this insider information, the group took massive short positions by buying large volumes of IEX put options in the days leading up to the CERC announcement, particularly between 21 and 23 July 2025. SEBI's analysis of trading between 1st July and 14 August 2025 showed minimal prior activity by the noticees in IEX, but trading spiked just before the announcement, especially in put European option contracts.

SEBI emphasized the need for immediate action to prevent the alleged ill-gotten gains from being further transferred beyond regulatory reach. The regulator noted that part of the gains had already been transferred to connected entities.