BofA Securities India settles alleged violations related to insider trading and merchant banking regulations with India’s markets regulator, the Securities and Exchange Board of India (SEBI), after paying ₹58.5 lakh (about $61,903), according to reports. SEBI says a show-cause notice alleged that the firm failed to maintain the structured digital database required under insider trading regulations. In its settlement order, SEBI states that BofA Securities India agreed to resolve the proceedings without admitting or denying the alleged violations. The firm did not comment on the settlement order or the allegations, Reuters reported earlier, citing a regulatory notice. That notice, linked to SEBI’s investigation into BofA Securities India’s role in managing a share sale in March 2024 for Aditya Birla Sun Life Asset Management, alleged breaches of insider trading rules and internal “Chinese wall” norms. SEBI’s notice alleged that deal-team personnel, while allegedly in possession of unpublished price-sensitive information, contacted potential investors directly or indirectly. The regulator also alleged BofA suppressed material facts and made false statements during the investigation, which was reportedly triggered by a 2024 whistleblower complaint.
BofA Securities India settles alleged insider trading, merchant banking violations with SEBI
BofA Securities India settles alleged violations related to insider trading and merchant banking regulations with India’s markets regulator, the Securities and Exchange Board of India (SEBI), after pa...
- SEBI and BofA Securities India settle alleged insider trading and related regulatory violations through a settlement process.
- SEBI cites an allegation that BofA Securities India failed to maintain the structured digital database required under insider trading regulations.
- BofA Securities India pays ₹58.5 lakh as part of the settlement.
- SEBI’s settlement order states BofA agrees to settle without admitting or denying the alleged violations.
- Earlier reporting links the allegations to BofA’s role in managing a March 2024 share sale for Aditya Birla Sun Life Asset Management.
BofA Securities India has settled alleged violations related to insider trading and merchant banking regulations with Sebi after paying ₹58.5 lakh
3 months agoThe Indian investment banking and securities arm of Bank of America agreed to settle allegations of insider trading and merchant banking rule violations with the country's markets regulator by paying 5.9 million rupees ($61,903), the Securities and Exchange Board of India said on Monday.In its settlement order, the SEBI stated that a show-cause notice sent to BofA Securities India alleged the firm's failure to maintain the structured digital database required by insider trading regulations. BofA declined to comment on the settlement order and the allegations.The SEBI said BofA Securities India agreed to settle the proceedings without admitting or denying the alleged violations.In January, Reuters, citing a regulatory notice, reported that the SEBI had accused BofA Securities India of breaching insider trading rules and internal "Chinese wall" norms in connection with a 2024 share sale.The notice followed a SEBI investigation into BofA Securities India's role in managing a March 2024 share sale in Aditya Birla Sun Life Asset Management.According to the notice, which was reviewed by Reuters but not made public, the SEBI found that BofA's deal team, while in possession of unpublished price-sensitive information related to the share sale, had contacted potential investors "directly/indirectly".The regulator had also alleged that BofA suppressed material facts and made false statements during the investigation, which was triggered by a whistleblower complaint in 2024.
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