India’s capital markets watchdog, the Securities and Exchange Board of India (SEBI), has taken the rare step of accusing current and former executives from global consulting firms EY and PwC of breaching insider trading norms, according to a regulatory notice reviewed by Reuters. The action highlights increased scrutiny of compliance among advisers and private-equity professionals involved in high-profile transactions.
Allegations in the Yes Bank Transaction
The insider trading accusations arise from SEBI’s investigation into the July 2022 equity transaction involving Yes Bank, in which U.S. private-equity firms Carlyle Group and Advent International acquired a combined 10 percent stake for about $1.1 billion. SEBI’s regulatory notice — issued in November 2025 but only recently reported — alleges that unpublished price-sensitive information related to the deal was shared among executives at Carlyle, Advent, EY and PwC, and that some individuals used this privileged information to trade Yes Bank shares before the public announcement.
According to the notice, 19 individuals are implicated, including two executives from PwC and EY along with five family members and friends who allegedly made unlawful gains by trading ahead of the share offering. In addition, SEBI has accused some of the executives of facilitating the improper sharing of confidential information. Most of the accused are reported to still be employed at their respective firms.
Compliance Lapses and Show-Cause Notices
SEBI’s notice also highlights compliance deficiencies at both EY and PwC. In EY’s case, the regulator noted that its restricted trading lists — designed to prevent trading by employees with access to sensitive information — were not sufficiently broad, allowing partners and staff with potential exposure to the Yes Bank deal to trade shares without appropriate restrictions. PwC likewise was found to have inadequate internal controls to prevent trading or sharing of unpublished information arising from its advisory roles.
By issuing show-cause notices, SEBI’s first formal step post-investigation, the regulator has asked the named executives and firms to explain why penalties or sanctions should not be imposed under India’s insider trading regulations. If SEBI’s findings are upheld after due process, the individuals and potentially the firms could face monetary penalties or trading restrictions.
Wider Implications for Market Integrity
The allegations mark a significant enforcement action against executives at major professional services firms and private-equity investors. Insider trading enforcement by SEBI has historically targeted individuals and brokers, but extending scrutiny to senior advisers from Big Four consulting firms and global investment firms underscores regulators’ intent to uphold market transparency and investor confidence.
While SEBI has not publicly released the notice or detailed comments on the ongoing matter, the case underscores heightened regulatory vigilance in India’s capital markets — particularly around high-value transactions that attract foreign and domestic investors alike.
