SEBI Issues Insider Trading Notices to EY, PwC Executives
The Securities and Exchange Board of India has issued show-cause notices alleging insider trading and compliance failures involving current and former executives linked to Ernst & Young and PricewaterhouseCoopers. The action is tied to trading activity ahead of a major share sale by Yes Bank in 2022.
Allegations Outlined
SEBI’s notice names multiple individuals accused of trading on unpublished price-sensitive information or sharing such information before the transaction became public. The regulator has also flagged alleged lapses in internal controls at the firms, saying safeguards were insufficient to prevent misuse of confidential deal-related information.
Transaction Context
The case relates to a stake sale in Yes Bank by private equity investors, which was announced publicly after the alleged trading activity. SEBI maintains that certain market participants benefited from advance knowledge of the deal.
Responses and Next Steps
Those named have been asked to submit explanations. SEBI has not reached any final conclusions, and no penalties have been imposed at this stage. The matter will proceed after replies are reviewed.
