Most of the executives named in the SEBI’s insider trading probe related to Yes Bank shares are expected to settle the case with the regulator, as per news reports.
Out of the 19 executives who received show-cause notices, around 16 individuals are likely to file settlement applications, while only three have chosen to contest the allegations.
The individuals involved include a former Yes Bank board member, senior executives from private equity firms Carlyle and Advent, and partners from professional services firms EY and PwC.
The investigation has drawn attention to compliance gaps and weak internal information barriers within India’s deal-making ecosystem, particularly regarding the handling of unpublished price-sensitive information (UPSI).
SEBI initiated the investigation following the announcement of a combined ₹8,900 crore investment in Yes Bank by Carlyle and Advent, each acquiring a 10% stake in the lender.
The regulator defined the UPSI period from December 10, 2021 to July 29, 2022, when the bank formally announced board approval for the investment. However, Sebi expanded its examination of trading activities in Yes Bank shares from June 9, 2021 to January 30, 2023 to identify any potential misuse of confidential information.
According to the show-cause notice, the regulator found multiple instances where sensitive information related to the investment deal was allegedly shared informally with acquaintances, who later traded in the bank’s shares.
The case highlights how deal-related information may have travelled across informal social networks beyond the official deal teams.
In one instance cited in the notice, a former Yes Bank board member who served on the audit committee allegedly shared information about the transaction with close friends, who subsequently traded in the stock.
Another example involved a private equity executive who reportedly discussed the transaction with neighbouring acquaintances, who later executed trades in Yes Bank shares.
In a separate case, a venture capital fund manager allegedly received information from a private equity executive, after which the manager’s mother traded in the stock.
Read more: Vodafone Idea Share Price in Focus as Government Relief Sparks Fresh Investor Interest.
The Yes Bank insider trading case underscores growing regulatory vigilance over information flows in India’s expanding private equity and deal advisory ecosystem. While most executives appear inclined to resolve the matter through settlement, the episode serves as a reminder that handling of market-sensitive information is now under far sharper regulatory scrutiny, particularly as global investment activity in Indian listed companies continues to rise.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Mar 10, 2026, 3:12 PM IST
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