IEX Shares Plunge After CERC Announces Market Coupling

Imagine a marketplace where different shops sell electricity.

Currently, each shop (power exchange) sets its own prices.

The government (CERC) has decided to create one central pricing system, so all shops use the same price.

This is a big change for the biggest shop, Indian Energy Exchange (IEX), which used to set the prices and had the most customers.

Because of this change, IEX might not be as popular, and the value of its company shares dropped.

Now all energy exchanges will share the responsibility of setting the price.

This is because the government wants to make the market fairer.