SEBI Accuses BofA Unit of Insider Trading Lapses in ₹1,470-Crore ABSL AMC Share Sale
India’s markets regulator, the Securities and Exchange Board of India (SEBI), has accused a domestic unit of Bank of America (BofA) of violating insider trading regulations and failing to maintain internal “Chinese walls” during a March 2024 share sale of Aditya Birla Sun Life Asset Management (ABSL AMC). According to a non-public SEBI notice dated October 30 and reviewed by Reuters, the bank’s deal team allegedly contacted potential investors while holding unpublished price-sensitive information, breaching Indian securities rules.
SEBI said the deal team sought assistance from the bank’s broking, research and Asia-Pacific syndicate teams—units not part of the core transaction—to approach investors and share valuation reports and confidential details before the formal announcement of the $177 million sale. The regulator cited interactions involving HDFC Life, Norges Bank and Enam Holdings, concluding that information was not handled on a strict “need-to-know” basis, though it stopped short of presenting evidence of specific price-sensitive data being exchanged.
The case, which emerged from a 2024 whistleblower complaint and led to the exit of senior officials, also accuses the bank of suppressing material facts and making false statements during the probe. SEBI said BofA initially denied any investor communications before acknowledging them after being confronted with third-party responses. The bank has since applied to settle the matter without admitting guilt, according to a source familiar with the process, while BofA and SEBI declined to comment on the allegations.
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