Capital markets regulator SEBI has alleged that a Bank of America unit shared confidential information about a $180 million sale and misled investigators. The bank’s deal team reportedly disclosed price-sensitive details of a 2024 sale of Aditya Birla Sun Life AMC shares to non-execution team employees. SEBI criticized the bank for inadequate safeguards against leaks of confidential transactions.
Bank of America is said to be preparing a response to SEBI’s allegations and may seek a multi-million-dollar settlement without admitting wrongdoing. Sharing non-public information before announcements is illegal in India and other markets to prevent unfair gains. The bank corrected its initial account to SEBI and provided records of communications between non-deal team staff and investors.
The Wall Street Journal previously reported a whistleblower complaint about the leak in 2024, which the bank denied. In November 2023, the Reserve Bank of India fined Bank of America for violating reporting requirements under FEMA. Additionally, SEBI imposed a penalty on Rahul Sharma, CEO of Swan LNG, for insider trading violations related to trades in Swan Corp shares.
