Daijiworld Media Network - Mumbai

Mumbai, Jan 9: Markets regulator Securities and Exchange Board of India (SEBI) has issued a notice to Bank of America’s India arm in connection with a 2024 case involving the alleged sharing of privileged and confidential information related to a share sale deal in Aditya Birla Sun Life AMC.

According to reports, SEBI’s action pertains to a $180-million block deal executed between February and March 2024, during which Bank of America’s investment banking division allegedly shared sensitive valuation reports and deal-related information with other arms of the bank and select investors — a move that violates SEBI’s regulatory framework.

While Bank of America initially denied any wrongdoing, reports indicate that it has since approached the regulator seeking settlement of the matter. SEBI, in line with its policy, has declined to comment on ongoing investigations or adjudication proceedings. Bank of America also did not respond to queries on the notice.

According to a report by Reuters, multiple arms of Bank of America circulated confidential information linked to the block deal with investors during the transaction period. A separate report by The Wall Street Journal claimed that during SEBI’s preliminary probe, the bank’s team attempted to withhold details of the transaction and allegedly made false statements to the regulator.

SEBI’s notice reportedly stated that while one of Bank of America’s arms was appointed to execute the transaction on February 28, 2024, the formal public announcement of the deal was made only on March 18, 2025. During this interim period, the bank’s deal team is said to have contacted at least three institutional investors, sharing non-public, price-sensitive information related to the stock.

The regulator is examining whether the alleged information-sharing breached SEBI’s norms on conflict of interest and confidentiality, which are aimed at ensuring fair and transparent market practices.