India’s markets regulator, the Securities and Exchange Board of India (SEBI), has found that Bank of America improperly disclosed non-public, price-sensitive information in connection with a $180 million block trade of Aditya Birla Sun Life Asset Management Co. (ABSL AMC) shares in 2024. The regulator alleges the bank’s deal team shared confidential details with individuals who were not directly involved in the transaction, potentially breaching insider trading safeguards.

Key Highlights

• SEBI found Bank of America shared confidential information ahead of a $180 million Aditya Birla AMC trade.
• The regulator cited lapses in internal controls and possible breaches of information barrier norms.

SEBI’s show-cause notice, issued in November, also accused Bank of America of providing misleading information to investigators during the probe and failing to implement adequate internal controls to protect deal-related information. The notice highlighted shortcomings in maintaining “Chinese walls” between the bank’s deal team and its broking, research, and syndicate units.

Following the initial whistleblower complaint in 2024, Bank of America corrected some earlier statements to SEBI after its own internal review acknowledged that information had been shared outside the core deal team. Several senior investment bankers in India reportedly left the firm amid the investigation.

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Bank of America is preparing its response to SEBI’s allegations and is expected to propose a multi-million-dollar settlement without admitting or denying wrongdoing. SEBI has not yet commented publicly on the matter, and the case underscores regulatory scrutiny of confidential information handling in capital markets.