SEBI Accuses Bank Of America Of Insider Trading In 2024 ABSL AMC Deal

The Securities and Exchange Board of India (SEBI) has accused Bank of America (BofA) of breaching insider trading rules and failing to maintain internal “Chinese walls” during a 2024 share sale of Aditya Birla Sun Life Asset Management (ABSL AMC).

SEBI’s investigation found that BofA’s deal team, while holding unpublished price-sensitive information, contacted potential investors directly and through its broking, research, and Asia-Pacific syndicate teams. These interactions included providing valuation reports and seeking feedback from firms such as HDFC Life, Enam Holdings, and Norway’s Norges Bank before the formal announcement of the share sale. SEBI said the bank initially denied communications with investors and made false statements during the probe. Following an internal investigation, three officials were asked to resign for not following internal protocols.

BofA has filed an application with SEBI to settle the charges without admitting guilt, and the regulator is reviewing it.