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News Topical, Digital Desk : On the discussion of market coupling related to IEX (Indian Energy Exchange), the government has clearly said that this step is not a major reform for the energy sector. However, the report of the grid controller has been submitted to CERC and in future, further expansion of the energy derivatives market may be considered.


Grid Controller's report submitted to CERC- Grid Controller of India has submitted its report to the Central Electricity Regulatory Commission (CERC). The report is under review, but no final decision has been taken.

For an exchange like IEX, market coupling may mean changes in its discovery process, but its direct impact on the business is not considered to be very big. 

What is market coupling? Market coupling means that the price and dealing of electricity in different power exchanges should be done through a centralized process, which will bring uniformity in prices. This may remove the control of trading a little. 

Government will keep the derivatives market in focus- Government sources have said that in future, expansion of the energy derivatives market can definitely be considered. This will add depth to the market and open new options for investors. 

What does IEX stock mean for investors? For now, it is clear from the government's comment that there is not going to be any major change in the operational model of IEX. This means that the company's regulatory risks are limited for now. For investors who are in IEX for a long time, this news can be a relief. Market coupling can definitely reduce the monopoly of IEX, but it will not have a major impact on the basic business model. Overall- the government's stance on the discussion of market coupling raised regarding IEX is currently neutral. This means that this stock is not going to face any major setback right now. Yes, if steps are taken to advance the derivatives market, then new opportunities can also open up for IEX. 


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