SEBI Alleges Insider Trading By EY & PwC Executives In Yes Bank Case

The Securities and Exchange Board of India (SEBI) has issued a show-cause notice accusing current and former Executives at EY and PwC, along with Executives at Carlyle Group and Advent International, of breaching insider trading rules.

The notice relates to trading in Yes Bank shares ahead of a July 2022 share offering in which Carlyle and Advent bought a combined 10% stake for USD 1.1 billion. SEBI alleged that unpublished price-sensitive information was shared among executives and others, enabling trades before the deal was announced. The notice named 19 individuals, including executives, family members, and associates, and cited gaps in compliance processes at EY and PwC. It also accused a former Yes Bank board member of sharing information that enabled trading.

The regulator’s action followed an investigation into share price movements before the offering. The individuals named are submitting their responses, and if the alleged violations are confirmed, they may face penalties or restrictions.