Indian Energy Exchange's Growth Under Dark Clouds Due To Proposed Regulatory Changes

But it is this ambition which has prompted the government to propose market coupling, which will change how the Indian exchange market works. This has worried the largest exchange and the investors in its scrip. 

The debate over whether the country should go for market coupling to streamline the sector was all the rage earlier in the year when the Centre first introduced the proposal. Despite the opposition of some players, the plan continued to gather steam throughout the year. Citing senior officials, Financial Express recently reported that the implementation of the plan can be completed as soon as the end of the financial year 2024. If the move goes as planned within the next three months, analysts worry about the impact on IEX, which stands to lose the most due to its position in the market.  

Agreeing with the possibility of a big impact on the company, Dhirendra Mishra, Senior manager of Growth Advisory at Aranca, argues that regulatory uncertainty has dragged the company’s stocks down in 2023. He adds, “In case the CERC announces the implementation of market coupling, the company’s share might get impacted significantly.”