BofA Securities Settles Insider Trading Allegations with Sebi for ₹58.5 Lakh
BofA Securities settles insider trading case with Sebi
The Economic Times
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BofA Securities India has resolved an insider trading case with the Securities and Exchange Board of India (Sebi) by paying a settlement of ₹58.5 lakh. The case involved allegations of failing to maintain a structural digital database as required under insider trading regulations.
- 01BofA Securities India settled an insider trading case with Sebi for ₹58.5 lakh.
- 02The case involved violations of insider trading and merchant banking regulations.
- 03Sebi had issued a show cause notice in May 2022 regarding the violations.
- 04The settlement application was filed in July 2025 during ongoing adjudication proceedings.
- 05Sebi's rules on insider trading were tightened in 2019, requiring a structural digital database.
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BofA Securities India has settled an insider trading case with the Securities and Exchange Board of India (Sebi) by paying ₹58.5 lakh (approximately $70,000 USD). The case stemmed from alleged violations of insider trading and merchant banking regulations, specifically the failure to maintain a structural digital database (SDD) as mandated by Sebi. In May 2022, Sebi issued a show cause notice to BofA Securities, highlighting the merchant bank's shortcomings in adhering to the regulations regarding unpublished price sensitive information (UPSI). The SDD is an electronic record intended to track the sharing of UPSI, a measure introduced by Sebi in 2019 to combat information leakage. Despite ongoing adjudication proceedings, BofA Securities submitted a settlement application to Sebi in July 2025, leading to the resolution of the case.
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The settlement reinforces the importance of compliance with insider trading regulations for financial institutions, potentially affecting their operational practices.
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