BofA Securities India Pays ₹58.5 Lakh To Settle SEBI Insider Trading Norms Violation Case

New Delhi, May 11: Capital markets regulator Sebi on Monday settled proceedings against BofA Securities India Ltd after the merchant banker paid Rs 58.5 lakh towards the settlement amount in a case related to alleged violation of insider trading norms.

Sebi initiated proceedings over PIT violations

The Securities and Exchange Board of India (Sebi) initiated adjudication proceedings against BofA Securities India for the alleged violation of provisions of the Prohibition of Insider Trading (PIT) Regulations and Merchant Bankers Rules.

According to Sebi, it was alleged that BofA Securities India, being a merchant banker, failed to maintain the Structured Digital Database (SDD) as prescribed under PIT regulations.

Thereafter, a show-cause notice (SCN) was issued by Sebi to the merchant banker on May 26, 2025, for the alleged violations.

Merchant banker filed settlement application

Subsequently, BofA Securities India Ltd (Applicant) filed a settlement application with Sebi on July 1, 2025, proposing to settle the proceedings initiated against it “without admitting or denying the findings of facts and conclusions of law”.

Sebi’s High Powered Advisory Committee recommended that the matter be settled upon payment of Rs 58.50 lakh, which was later approved by the regulator’s panel of whole-time members.

Accordingly, BofA Securities India Ltd paid the settlement amount, and the remittance of the same was confirmed by Sebi on May 4, 2026.

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Sebi disposes of adjudication proceedings

“Therefore, in view of the receipt of settlement amount... by Sebi, the instant adjudication proceedings initiated against Applicant vide SCN dated May 26, 2025 is disposed of in terms... of the Settlement Regulations,” Sebi’s Adjudicating Officer Amit Kapoor said in the order.

The settlement resolves the case, and no further action will be taken against the applicant unless it breaches the terms of the settlement, the order said.

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