Sebi Flags Insider Trading by EY, PwC Execs in Yes Bank's $1.1 Billion Offering

• India's Sebi has accused senior executives from EY, PwC, Carlyle Group, and Advent International of insider trading in Yes Bank's 2022 $1.1 billion share sale.
• Unpublished price sensitive information (UPSI) regarding the capital raise was allegedly shared and used for unlawful gains before the deal announcement.
• 19 individuals are accused, with seven allegedly trading on privileged information and four sharing it; eight EY and PwC executives are flagged for weak internal compliance.
• EY and PwC were engaged for advisory services by Advent and Yes Bank, respectively, and allegedly breached confidentiality norms, leading to information leaks.
• Sebi criticized EY for not having Yes Bank on a sufficiently broad 'restricted list' and PwC for lacking a 'restricted stock list' for advisory clients, violating Indian securities regulations.

Why It Matters: Sebi has accused top executives and firms of insider trading in Yes Bank's share sale due to UPSI misuse.