CERC launches probe into GNA Energy after SEBI flags insider trading link

The Central Electricity Regulatory Commission (CERC) has opened a suo motu investigation into GNA Energy Private Limited (GNAEPL), an operator of an Over-the-Counter (OTC) power trading platform. The move follows findings by the Securities and Exchange Board of India (SEBI) that senior executives of GNAEPL engaged in insider trading using confidential regulatory information.

In its order dated 28 October 2025, CERC appointed an Investigating Authority under the Central Electricity Regulatory Commission (Power Market) Regulations, 2021, to examine possible market manipulation and insider trading. The investigation will be led by Shri R. Pushkarna, Chief (Finance), assisted by Shri Manish Choudhry, Joint Chief, who shall submit their report within 21 days.

The Commission noted that SEBI’s findings provide sufficient grounds for action under Section 128 of the Electricity Act, 2003, and Regulation 51 of the CERC (Conduct of Business) Regulations, 2023. The order was passed by a Coram comprising Chairperson Shri Jishnu Barua and Members Shri Ramesh Babu V., Shri Harish Dudani, and Shri Ravinder Singh Dhillon.

Earlier this month, Power Peak Digest reported that SEBI uncovered insider trading worth over Rs 173 crore involving shares of the Indian Energy Exchange (IEX). SEBI’s interim order revealed that key personnel at GNAEPL, including Managing Director and CEO Sanjeev Kumar, shareholder Bhoovan Singh, and Chief Technology and Information Security Officer Narender Kumar, had access to unpublished price-sensitive information (UPSI) about CERC’s market coupling order dated 23 July 2025.

According to SEBI, these individuals traded in IEX put options ahead of the CERC order’s release, anticipating a fall in the exchange’s trading volumes and share price. The regulator found that Sanjeev Kumar had regular communications with CERC officials and that confidential CERC documents were discovered on the device of shareholder Bhoovan Singh. SEBI also traced part of the alleged profits, exceeding Rs 26 crore, to entities linked to GNAEPL.

CERC had granted GNAEPL registration to operate an OTC platform in May 2023, subject to compliance with the Power Market Regulations, 2021. These rules require OTC platforms to remain neutral and avoid influencing the decision-making of market participants.

CERC observed that the conduct described in SEBI’s order could constitute market manipulation and insider trading under Regulation 49(2)(b) of the Power Market Regulations, 2021. The Commission’s investigation will determine whether GNAEPL or its officials violated any provisions of these regulations or the conditions of their registration.

This case marks one of the few instances where SEBI’s surveillance findings have led to a direct regulatory probe by CERC. The outcome is expected to clarify how insider trading issues are handled in India’s power market.

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