India’s markets regulator, the Securities and Exchange Board of India (SEBI), has accused a unit of Bank of America (BofA) of violating insider trading regulations in connection with a major stock transaction carried out in 2024.
According to the regulator, Bank of America’s India investment banking arm improperly shared unpublished price-sensitive information (UPSI) related to a large block trade involving shares of Aditya Birla Sun Life Asset Management. SEBI alleged that confidential deal details were circulated internally to teams that were not authorised to access such information, including broking and research units.
The regulator stated that this internal sharing amounted to a breakdown of the bank’s so-called “Chinese walls”, which are meant to prevent sensitive information from leaking across departments and influencing trading activity. Such breaches, SEBI said, pose a serious risk to market fairness and investor confidence.
SEBI also claimed that Bank of America initially provided inaccurate or misleading statements during the investigation, later revising its disclosures after an internal review. While the regulator has not alleged that the bank or its employees made illegal trading profits, it highlighted serious lapses in internal controls and compliance systems.
The case originated from a whistleblower complaint filed in 2024 and remains under regulatory review. Bank of America is reportedly exploring a settlement process with SEBI, without admitting wrongdoing.
The development underscores SEBI’s increased scrutiny of global financial institutions operating in India and its firm stance on enforcing insider trading and market conduct rules.
India ke market regulator SEBI (Securities and Exchange Board of India) ne Bank of America (BofA) ki India investment banking unit par insider trading rules violate karne ka allegation lagaya hai. Yeh case ek bade stock deal se related hai jo 2024 me execute hua tha.
SEBI ke according, Bank of America ne unpublished price-sensitive information (UPSI) ko unauthorized teams ke saath share kiya. Yeh information Aditya Birla Sun Life Asset Management ke shares ki ek block deal se judi thi. Regulator ka kehna hai ki deal se pehle hi confidential details bank ke broking aur research units tak pahunch gayi thi.
SEBI ne yeh bhi kaha ki bank ke internal “Chinese walls” fail ho gaye, jinka purpose sensitive information ko alag-alag departments tak leak hone se rokna hota hai. Aise cases market fairness aur investor confidence ke liye serious concern hote hain.
Regulator ne yeh bhi allege kiya ki investigation ke dauran Bank of America ne initially incorrect information provide ki, jise baad me internal review ke baad correct kiya gaya. Halaanki SEBI ne yeh claim nahi kiya ki bank ne is deal se direct trading profit kamaya.
Yeh case 2024 me file hui ek whistleblower complaint ke baad samne aaya. Abhi matter regulatory review ke under hai, aur reports ke mutabik Bank of America settlement process explore kar raha hai, bina kisi wrongdoing ko accept kiye.
Yeh development clearly dikhata hai ki SEBI global financial institutions par strict regulatory scrutiny rakh raha hai aur insider trading rules par zero-tolerance approach follow kar raha hai.