What did India's financial regulator accuse Bank of America of?

The regulator accused Bank of America of improperly sharing confidential information about a $180 million stock block trade and misleading investigators.

What is a block trade mentioned in the Bank of America case?

A block trade involves a bank helping a client sell a large amount of stock, often by distributing it in smaller portions to investors after gauging market interest.

Who was involved in the Bank of America India trading leak?

The case involves Bank of America's deal team, other employees within the bank, the Securities and Exchange Board of India, and investors such as HDFC Life, Jane Street, and Norges Bank.

Home / Business and Economy / India Regulator Probes BofA Over $180M Block Trade Leak

India Regulator Probes BofA Over $180M Block Trade Leak

8 Jan

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Summary

Bank of America allegedly shared confidential deal information internally.
India's regulator accused the bank of misleading investigators.
Several senior bankers exited Bank of America due to the misconduct.

India Regulator Probes BofA Over $180M Block Trade Leak

India's financial regulator has accused Bank of America of improperly sharing material nonpublic information concerning a $180 million block trade of stock. A yearlong investigation concluded that the bank's deal team shared price-sensitive information with employees not directly involved in the transaction, violating confidentiality rules. This alleged leak involved shares in the Indian asset-management firm Aditya Birla Sun Life AMC.

The Securities and Exchange Board of India also charged Bank of America with providing false statements to its investigators. The regulator noted the bank's failure to establish adequate safeguards for confidential capital-markets transaction data. Bank of America is reportedly preparing a response and may seek a settlement without admitting fault.

As a result of the alleged misconduct, several senior bankers have departed from Bank of America, including its former head of investment banking for India. The incident highlights the strict regulations surrounding block trades, where sensitive information can significantly impact market prices.