SEBI, India’s securities regulator, announced on January 8 2026 that Bank of America’s India securities unit improperly shared material non‑public information about a $180 million block trade of shares in Aditya Birla Sun Life Asset Management that took place in March 2024. The regulator’s findings also allege that the bank misled investigators during the probe, initially denying that its employees had met with investors before later correcting the record.
The block trade, executed in March 2024, involved a large purchase of Aditya Birla Sun Life shares that was not publicly disclosed until the transaction was completed. SEBI’s investigation revealed that Bank of America’s compliance officer and other officials breached the required “Chinese wall” between the bank’s research and trading desks, allowing confidential price‑sensitive information to flow to parties who could act on it. The breach violated India’s insider‑trading laws, which prohibit the sharing of non‑public, price‑sensitive information with anyone who could use it to trade.
During the investigation, Bank of America initially denied that its employees had met with investors or that any confidential information had been shared. SEBI’s records show that the bank later admitted to the meetings and to the flow of information, a fact that the regulator described as “misleading statements” to investigators. The admission underscores the seriousness of the compliance failure and raises questions about the bank’s internal controls and culture of transparency.
SEBI’s findings could lead to substantial fines and a multi‑million‑dollar settlement that the bank is reportedly preparing to negotiate without admitting wrongdoing. The regulatory action will also increase the bank’s compliance costs and could trigger a review of its India operations, where senior executives have already resigned in the wake of the controversy. The case highlights the importance of robust information barriers in global banks operating in multiple jurisdictions.
The regulatory action is a significant event for Bank of America, as it signals heightened scrutiny from Indian regulators and could affect the bank’s reputation in a key growth market. While no immediate market reaction has been reported, the findings may influence the bank’s future regulatory strategy and its approach to cross‑border trading and research activities.
The case also serves as a cautionary tale for other financial institutions about the risks of inadequate internal controls and the potential reputational and financial consequences of insider‑trading violations.
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