BofA Securities Settles SEBI Case On Payment Of ₹58.50 Lakh Over Insider Trading Compliance Lapses

The Securities and Exchange Board of India (SEBI) has closed adjudication proceedings against BofA Securities India Limited, the Indian securities arm of Bank of America. The company paid ₹58.50 lakh to settle allegations that, in its role as a merchant banker, it failed to maintain a Structured Digital Database required under insider trading regulations.

In the settlement order, SEBI Adjudicating Officer Amit Kapoor said: “...in view of the acceptance of the settlement terms and the receipt of settlement amount as above by SEBI, the instant adjudication proceedings initiated against Applicant vide SCN dated May 26, 2025 is disposed of in terms of section 15JB of the SEBI Act read with regulation 23(1) r/w Regulation 28 of the Settlement Regulations on the basis of the settlement terms."

The case arose from allegations that the company did not comply with insider trading safeguards, specifically the requirement to maintain a Structured Digital Database to track unpublished price-sensitive information. The proceedings also involved alleged breaches of regulatory obligations applicable to merchant bankers.

SEBI appointed Kapoor as adjudicating officer on May 5, 2025.

Less than three weeks later, on May 26, the regulator issued a show cause notice alleging that BofA Securities India Limited, while acting as a merchant banker, had failed to maintain the prescribed database.

Rather than contest the proceedings to conclusion, the company filed a settlement application on July 1, 2025 under the SEBI (Settlement Proceedings) Regulations, 2018, without admitting or denying the findings of fact and conclusions of law.

It later appeared before SEBI's Internal Committee on January 19, 2026, and submitted revised settlement terms on January 23. The High-Powered Advisory Committee considered the proposal at its February 20 meeting and recommended settlement on payment of ₹58.50 lakh.

SEBI's Panel of Whole-Time Members approved that recommendation on April 2, 2026. The approval was conveyed to the company on April 15, following which BofA Securities India Limited informed the regulator on May 4 that it had remitted the settlement amount. SEBI confirmed receipt.

The order preserves SEBI's right to revive or initiate proceedings if it later finds that the company failed to make full and true disclosures, breached undertakings or waivers, or if discrepancies emerge in the basis on which the settlement was reached.