Mumbai, January 24, 2026
India’s market regulator, the Securities and Exchange Board of India (SEBI), has alleged insider trading and confidentiality breaches by current and former officials of PricewaterhouseCoopers (PwC) and Ernst & Young (EY) in connection with Yes Bank’s 2022 share sale, according to a regulatory notice issued in November.
The allegations relate to trading activity ahead of a major equity transaction in which US private equity firms Carlyle Group and Advent International acquired a significant stake in Yes Bank.
📉 Insider Trading Allegations in Yes Bank Deal
SEBI has accused officials from PwC India and EY India, along with their family members and close associates, of trading in Yes Bank shares using unpublished price-sensitive information (UPSI) prior to the public announcement of the deal.
According to the notice:
Two PwC and EY officials, along with five family members and friends, allegedly made illegal gains by trading ahead of the transaction
Most of the accused officials are still employed with their respective firms
Officials from Carlyle, Advent, PwC, and EY are alleged to have shared confidential deal-related information
SEBI also named a former Yes Bank board member, accusing the individual of sharing price-sensitive information that others subsequently used for trading.
💼 Background of the 2022 Share Sale
The regulatory action follows SEBI’s investigation into unusual price movements in Yes Bank shares ahead of the July 2022 equity offering.
In that transaction:
Carlyle and Advent acquired a combined 10% stake in Yes Bank
The deal was valued at approximately $1.1 billion
A day after the deal announcement on July 29, 2022, Yes Bank’s share price rose nearly 6%, triggering regulatory scrutiny
🔐 Breach of Confidentiality Protocols
SEBI’s investigation found that multiple advisory relationships during the transaction compromised confidentiality safeguards.
Advent appointed EY for tax advisory services
Yes Bank engaged EY Merchant Banking for valuation work
Carlyle and Advent hired PwC for tax planning and due diligence
SEBI alleged that officials from PwC and EY failed to maintain strict information barriers, allowing deal-related information to leak and enabling pre-deal trading.
⚖️ Rare Regulatory Action, Possible Penalties
The case represents a rare and significant enforcement action, with SEBI accusing 19 individuals, including senior executives from global consulting firms and private equity companies, of violating insider trading regulations.
Key allegations include:
Seven individuals trading based on privileged information
Four individuals allegedly sharing that information
Eight officials from PwC and EY among the accused
The individuals and firms are currently preparing responses to SEBI’s show-cause notices. If the charges are upheld, SEBI may impose financial penalties, trading bans, or other regulatory restrictions.
🏛️ SEBI Questions EY’s Internal Controls
In its notice, SEBI also flagged weaknesses in EY’s internal trading policy, stating that it was not fully compliant with regulatory norms.
The regulator has sought explanations from EY India Chairman Rajiv Memani and the firm’s Chief Operating Officer, asking why penalties should not be imposed on them for lapses in oversight and compliance.
The case underscores SEBI’s tightening stance on market integrity and insider trading enforcement, particularly involving high-profile global advisory firms.
