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SEBI Said to Find Bank of America Leaked Data in $180 Million Block Trade

The bank is expected to pursue a settlement without admitting wrongdoing.

Overview

  • The Wall Street Journal reported that SEBI concluded Bank of America improperly shared material non‑public information and later gave false or misleading statements during the probe.
  • The case involves a 2024 block sale of Aditya Birla Sun Life AMC shares, with a November show‑cause notice alleging disclosures to employees outside the execution team.
  • Bank of America initially told the regulator its procedures were compliant, then revised its submissions after an internal review and provided records of contacts between non‑deal staff and investors.
  • The regulator also faulted the bank’s safeguards for protecting confidential deal information, while several senior India bankers departed in 2024 after the allegations surfaced.
  • Bank of America is preparing a formal response, SEBI and the bank have not publicly commented on the latest report, and a financial penalty is likely as part of any settlement according to the reporting.