The Securities and Exchange Board of India (SEBI) has accused several current and former executives from Carlyle Group, Advent International, PwC, and EY of violating insider trading rules related to a Yes Bank stake sale in 2022. In this article, we will understand the whole story in detail.
In 2020, YES bank failed badly. The failure was triggered by aggressive lending, poor governance, and inflated asset books under founder Rana Kapoor, leading to huge losses. At that time, the Government of India asked SBI to buy 49% stake in YES Bank. The shares of YES Bank fell below Rs.10. This insider trading is related to this only. Some companies used their position and undisclosed information to make profits from stock market.
Who Has Been Accused?
According to a show-cause notice issued in November 2025, SEBI has named Executives from PwC and EY, Executives from Carlyle Group and Advent International, Family members and friends of some executives and a former Yes Bank board member. Most of the accused individuals are still working with their respective organisations.
SEBI alleges that unpublished price-sensitive information about the Yes Bank stake sale was shared illegally. This information was then used by others to trade Yes Bank shares before the deal became public, leading to unlawful profits.
PwC and EY are amongst the big 4 companies in the world. The Big 4 are the world’s four largest professional services networks, primarily known for accounting and auditing, consisting of Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG.
Details of the Yes Bank Deal
SEBI began its investigation after noticing unusual movement in Yes Bank shares before the stake sale.
- Carlyle and Advent together bought a 10% stake
- The deal value was $1.1 billion
- The deal was announced on 29 July 2022
- Yes Bank shares rose 6% the next day
Number of People Involved
SEBI has accused 19 individuals in this insider trading. 7 people traded using insider information. 4 people shared the confidential information. 8 PwC and EY executives were accused of weak compliance systems.
Role of EY and PwC
Before the share sale:
- EY was hired by Advent for tax advisory services
- EY Merchant Banking Services was hired by Yes Bank for valuation work
- PwC was hired by Carlyle and Advent for tax planning and due diligence
SEBI found that executives at EY and PwC failed to maintain confidentiality, allowing insider trading to take place.
Compliance Failures Highlighted by SEBI
SEBI said that:
- EY did not properly place Yes Bank on its “restricted list”
- Only staff directly involved in the deal were restricted from trading
- Other employees, who could access sensitive information, were allowed to trade
This violated rules requiring prior approval for trading by anyone with access to unpublished price-sensitive information.
SEBI Seeks Explanation from EY Leadership
SEBI has asked Rajiv Memani, Chairman and CEO of EY India, and the firm’s Chief Operating Officer to explain why penalties should not be imposed. SEBI said EY’s internal trading policy did not comply with insider trading regulations.
Allegations Against PwC
SEBI stated that PwC did not maintain a restricted stock list for its advisory and consulting clients, which is required to prevent insider trading.
What Happens Next?
A show-cause notice is the first step after an investigation. The accused individuals and companies are preparing their replies. If SEBI upholds the charges, they could face financial penalties or trading restrictions.
Why This Case Is Important
This is a rare case where senior executives from global consulting and private equity firms have been accused of insider trading in a fundraising deal.
