New Delhi, July 24
Shares of Indian Energy Exchange Ltd (IEX) declined a whopping 23 per cent from yesterday's close, after which it was locked in 10 per cent lower circuit on Thursday.
The massive drop came after the Central Electricity Regulatory Commission’s (CERC) decision for a phased rollout of market coupling across India’s power exchanges hit the market. The market coupling will begin with a three-month pilot run.
From Rs 187 per piece, shares of IEX fell as much as 10 per cent to Rs 169.10 apiece, as of 9:20 a.m. Since then, the massive selloff has persisted, resulting in the share's current price of 144.66, which has locked it in the lower circuit.
Once the lower circuit is triggered, further selling can only happen at that circuit price, but massive sell orders may remain pending, which won’t get executed until circuit limits are revised or reset in the next session.
Traditionally, IEX and other power exchanges could set electricity prices independently through price discovery mechanisms. With market coupling, all buy and sell bids from various exchanges will now be pooled and prices set centrally, rather than by individual exchanges.