SEBI: The Securities and Exchange Board of India (SEBI) has accused 19 former and current executives at the local units of Advent International, Carlyle Group, Ernst & Young (EY) and PricewaterhouseCoopers (PwC) among others, of breaching the rules of insider trading during a Yes Bank stake sale in 2022.
SEBI Notice Content
A SEBI notice that was issued in November 2025 revealed that two executives at Ernst & Young and PricewaterhouseCoopers, five other family members and friends made unlawful trading gains in Yes Bank shares before a stake sale.
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Unpublished price-sensitive information was shared by Carlyle Group, Advent International, PwC and EY executives that enabled many to trade on the basis of it. A former member of Yes Bank was also accused by SEBI of sharing sensitive information helping others to trade.
The SEBI notice follows its investigation in the shares of Yes Bank before the sale of shares. Advent and Carlyle purchased a combined stake of 10 percent for $1.1 billion. The shares of Yes Bank opened 6 percent higher a day after announcement of a deal was made.
Response Of Accused Individuals And Companies
The accused individuals and companies are now drafting their response to the notice of the Securities and Exchange Board of India.
A show cause notice is the first step of SEBI after the completion of a probe. If upheld, the 19 people named in the notice could face possible monetary penalties and/or limitations under Indian securities regulations.
Seven of the accused traded on the basis of privileged information while 4 shared that information. Eight EY and PwC executives were named for weak compliance processes.
EY was hired by Advent for tax advisory services and its feedback was sought on the management of Yes Bank. Separately, Ernst & Young was engaged by Yes Bank for conducting valuation work. PwC around the same time was hired by Advent and Carlyle for due diligence and tax planning.
