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