Sebi sends notices to PwC, EY execs over insider trades in 2022 Yes Bank share sale

MUMBAI: Markets regulator Sebi is investigating instances of illegal gains using insider information in a share sale transaction for Yes Bank in July 2022. Officials from PwC, EY, Carlyle Group and Advent International have been sent notices by Sebi as the regulator's investigations in this matter is continuing, a Reuters story said.

The Sebi notice said that executives at PwC and EY, some current and former, and their relatives had used those unpublished price-sensitive information (UPSI) to trade in Yes Bank shares ahead of a $1.1 billion deal and profited from the same.

The Sebi notice also alleged that executives at US private equity firms Carlyle Group and Advent International had shared UPSI related to the deal, which is a violation of Sebi's insider trading rules. A former Yes Bank board member has also been named in the same investigation.

A total of 19 entities have been named in the notice, Reuters said. While some of the entities had traded in Yes Bank shares ahead of the deal, some were lax with handling price sensitive information about the deal.

Advent, Carlyle, EY, PwC, Yes Bank did not respond to Reuters for comments. As per its protocol, Sebi doesn't comment on matters while an investigation is on.

In July 2022, Yes Bank had raised $1.1 billion by selling 10% to the two investors - The Carlyle Group and Advent International - together. The news led to a rally in the Yes bank shares with the stock opening 6% higher a day after the deal was announced on July 29, 2022.

In the Yes Bank share sale deal, EY was the tax adviser for Advent International and PwC was the advisor for Carlyle. A division of EY also did the valuation for the deal for Yes Bank.