Capital markets regulator Securities and Exchange Board of India (SEBI) has found that a Bank of America (BofA) unit improperly shared material non‑public information about a $180 million block sale and misled investigators, a report has claimed.
SEBI’s November show‑cause notice alleges the bank’s deal team disclosed price‑sensitive details of a 2024 sale of Aditya Birla Sun Life AMC shares to employees outside the execution team and later provided inaccurate statements to investigators, the report from the Wall Street Journal said, citing people familiar with the matter.
The regulator also allegedly faulted the bank for lacking adequate safeguards to prevent leaks of confidential capital‑markets transactions. Bank of America is preparing a response to SEBI’s accusations and is expected to seek a multi‑million‑dollar settlement without admitting or denying wrongdoing, it said
Sharing non‑public information ahead of announcements is illegal in India and several other markets as privileged parties to such information can profit from expected price moves. The bank corrected its earlier account to SEBI and produced records showing communications between non‑deal team staff and investors, the report noted.
Bank of America and SEBI did not immediately respond to the report.
The Wall Street Journal had reported a whistleblower complaint alleging the leak in 2024, but a spokesperson of the bank then denied allegations, saying it found no evidence to support the claims.
In November 2023, the Reserve Bank of India had imposed fines on Bank of America under the powers vested in it through sections of the FEMA.
Bank of America had been imposed a penalty for violating instructions on reporting requirements under the Liberalised Remittance Scheme of FEMA 1999.
Market regulator in September had imposed a penalty of Rs 2 lakh on Rahul Sharma, CEO of Swan LNG and designated person of Swan Corp (formerly Swan Energy Limited), for insider trading violations.
SEBI’s investigation found that Sharma carried out trades and contra-trades in Swan Corp shares between September 1 and November 30, 2023, earning unlawful gains of Rs 30.25 lakh.
