India’s market regulator, the Securities and Exchange Board of India (SEBI), has accused current and former executives at local units of PwC and EY, along with executives linked to Carlyle Group and Advent International, of breaching insider trading regulations in connection with Yes Bank’s 2022 share sale, according to a regulatory notice reviewed by Reuters.
The show-cause notice, issued in November 2025 and not previously made public, alleges that executives at PwC, EY, Carlyle and Advent shared unpublished price-sensitive information (UPSI) related to Yes Bank’s July 2022 capital-raising exercise, enabling others to trade in the bank’s shares ahead of the deal.
According to the notice, two executives each from PwC and EY, along with five family members and friends, are alleged to have made unlawful gains by trading in Yes Bank shares prior to the public announcement of the share offering. SEBI has also accused executives at Carlyle and Advent of sharing price-sensitive information in violation of insider trading rules.
The regulator further alleged that a former Yes Bank board member shared unpublished price-sensitive information that enabled others to trade ahead of the transaction.
The investigation focused on unusual movements in Yes Bank’s shares before its July 2022 share sale, in which Carlyle and Advent acquired a combined 10% stake for about $1.1 billion. Shares of Yes Bank rose around 6% in the session following the announcement on July 29, 2022, the notice said.
Most of the individuals named in the notice are still serving in their respective organisations, according to Reuters. The accused individuals and entities are currently in the process of preparing their responses to SEBI, two people familiar with the matter told the news agency, declining to be named due to the sensitivity of the investigation.
A show-cause notice marks the first formal step taken by SEBI after the completion of an investigation and seeks explanations from the accused. If the allegations are upheld, those named could face financial penalties or market restrictions under Indian securities laws.
Advent, Carlyle, PwC, EY, Yes Bank and SEBI did not respond to Reuters’ requests for comment.
The regulatory action represents a rare instance where senior executives at global consulting firms and private equity houses have been accused of insider trading violations linked to a major capital-raising transaction in India.
