Petition of the CERC (Procedure, Terms and Conditions for grant of trading license and other related matters) Regulations for Neufin – EQ

Summary:

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## 📄 Case Overview

| Parameter | Details |
|———–|———|
| **Petition No.** | 93/TD/2026 |
| **Petitioner** | Neufo Technologies Private Limited (Neufin) |
| **Application Type** | Grant of **inter-state trading license** under Section 14 of the Electricity Act, 2003 |
| **License Category Sought** | **Category V** (as per Trading Licence Regulations, 2020) |
| **Date of Hearing** | 25 March 2026 |
| **Next Hearing Date** | **16 April 2026** |
| **Coram** | Chairperson Jishnu Barua, Member Ramesh Babu V., Member Harish Dudani, Member Ravinder Singh Dhillon |

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## ⚖️ Regulatory Framework

| Regulation | Requirement |
|————|————-|
| **Trading Licence Regulations, 2020** | Governs procedure, terms, and conditions for grant of inter-state trading licenses |
| **Section 14, Electricity Act, 2003** | Empowers CERC to grant trading licenses |
| **Regulation 6(1)(b)** | Requires audited balance sheet as on date within 30 days preceding application |
| **Regulation 6(3)** | Requires publication of notice of application |
| **Regulation 3(2)** | Requires professionals to be engaged on **full-time basis** |

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## 📋 CERC Directions (Compliance Required)

The Commission **did not grant the license immediately** and directed the Petitioner to file the following information/clarifications **on an affidavit within two weeks** (i.e., by ~8 April 2026):

| S. No. | Direction | Regulatory Basis |
|——–|———–|——————|
| **1** | Submit an **audited special balance sheet** (instead of limited review report) as on a date within **30 days immediately preceding the filing of the application** – along with complete financial statements including schedules & notes to accounts | Regulation 6(1)(b) |
| **2** | Confirm with supporting documents that the **professionals** (whose profiles were submitted) are engaged on a **full-time basis** | Regulation 3(2) |
| **3** | Explain the **delay in publication of notice** of the application and demonstrate compliance with Regulation 6(3) – along with submission of a **legible copy of the published notice** | Regulation 6(3) |

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## 📌 Business Takeaways for Neufin (and similar applicants)

| Takeaway | Implication |
|———-|————-|
| **License not granted at first hearing** | CERC has flagged compliance gaps – not a routine approval. |
| **Financial reporting standard is high** | Limited review report is **not acceptable** – audited special balance sheet required with a very recent date (within 30 days of filing). |
| **Full-time professionals mandatory** | CERC will verify that key personnel are not merely on paper or part-time. |
| **Publication delay needs explanation** | Any delay in public notice must be justified; proof of publication required. |
| **Next hearing is critical** | If compliance is satisfactory by 16 April 2026, license may be granted; otherwise, further delays or rejection possible. |

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