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BofA pays ₹58.5 lakh to close SEBI case

Bank settles insider trading compliance issue without admitting wrongdoing

Bank of America’s (BofA) securities arm in India has settled an insider trading-related case with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹58.5 lakh.

The case was linked to alleged lapses in complying with insider trading regulations, particularly the failure to properly maintain a Structured Digital Database (SDD), which is required to track access to unpublished price-sensitive information.

SEBI had issued a show-cause notice to the firm last year, alleging violations of insider trading and merchant banking rules. The regulator said the database is a key compliance tool designed to prevent misuse of confidential market information.

During the proceedings, the company filed a settlement application without admitting or denying the allegations. The matter was reviewed by SEBI’s internal committees and later approved for settlement.

The regulator confirmed that after payment of the ₹58.5 lakh fee, the case has been disposed of.

The settlement brings closure to the proceedings, though SEBI retains the right to take action in future if any misrepresentation or non-compliance is found.

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