CERC Reserves Order On HPX Plea Seeking Three-Year Extension For PTC India Stake Dilution

The Central Electricity Regulatory Commission (CERC) has reserved its order on a petition filed by Hindustan Power Exchange Limited (HPX) seeking additional time to comply with shareholding regulations under the CERC (Power Market) Regulations, 2021. The petition, registered as No. 910/MP/2025, requests a three-year extension for promoter shareholder PTC India Limited to reduce its stake in HPX from 22.62 percent to the prescribed limit of 5 percent.

According to the regulations, a promoter shareholder that functions as a trading member of a power exchange cannot hold more than a 5 percent stake in that exchange. The rule has been introduced to ensure transparency, maintain market integrity, and avoid potential conflicts of interest. Since PTC India Limited is an active trading member, HPX is required to ensure that its shareholding is brought down to the permitted level.

The matter came up for hearing before the CERC bench led by Chairperson Shri Jishnu Barua, along with Commissioners Shri Ramesh Babu V., Shri Harish Dudani, and Shri Ravinder Singh Dhillon. During the proceedings, Indian Energy Exchange Limited (IEX) filed an application seeking to be made a party to the case.

IEX opposed HPX’s request for a three-year extension. The company argued that HPX had previously given a clear commitment that PTC India’s stake would be reduced to 5 percent once it began operating as a trading member. According to IEX, PTC India has continued to hold a stake of more than 22 percent for nearly four years despite the regulatory requirement. IEX stated that granting additional time would undermine the level playing field among power exchanges and weaken compliance with the existing regulations.

HPX, however, objected to IEX’s intervention in the case. The exchange argued that the issue is a regulatory compliance matter and does not directly affect IEX. HPX maintained that IEX does not have the legal standing to participate in the proceedings as an affected party. The company also informed the Commission that it had already submitted a detailed justification explaining the need for a three-year period to complete the stake dilution process in an orderly manner without causing market disruption.

After hearing detailed submissions from both sides, the Commission concluded the hearing and reserved its order on both HPX’s request for an extension and IEX’s application to intervene. The final decision is expected to provide important clarity on the enforcement of ownership limits in power exchanges and the role of competitors in regulatory proceedings.