Congestion management (CM) is one of the most important and challenging tasks of the Independent System Operator (ISO) in the deregulated environment. Recently, Sen Transformer (ST) has emerged as an important power flow control device which has the capability of power flow control over a wide range like UPFC. This device with a conventional transformer and tap changers has the capability of bidirectional control of active and reactive power and can play a very important role in future markets for mitigating the congestion problems. In this paper, the capability of ST has been utilized to manage transmission line congestion for hybrid based electricity market model. The main contribution of the paper is: (i) to develop an optimal rescheduling of generators strategy for real time congestion management and impact of ST for congestion management, (ii) the comparison of ST with unified power flow controller (UPFC) for congestion management, (iii) the secure bilateral transactions determination in a hybrid market model and congestion management with both power flow controllers in combined pool and bilateral market model. The optimal location of ST and UPFC has been obtained solving mixed integer non-linear programming model of congestion management. The proposed model has been applied for results on IEEE 24-bus RTS test system.