SEBI Issues Show - Cause Notice to Bank of America

SEBI has accused Bank of America of violating insider trading regulations in the Indian stock markets. The regulator alleged that during the sale of Aditya Birla Sun Life Asset Management shares, the bank leaked confidential information and also attempted to mislead the investigation into the matter. According to a Reuters report, SEBI has issued show-cause notices to Bank of America in this connection.

The transaction, which took place in March 2024, was valued at approximately USD 177 million. It is alleged that during the deal, the bank shared sensitive information, including stock prices and other confidential details, with employees and investors. Although Bank of America stated that its internal review found no violations, SEBI’s investigation concluded that confidential information was disclosed and that false statements were made in an attempt to divert the probe. It is also reported that Bank of America has filed a settlement application with SEBI regarding this matter.