BofA Securities India has reached a settlement with the Securities and Exchange Board of India (SEBI) concerning issues related to insider trading regulations, as per news reports.
The settlement amount of ₹58.5 lakh addresses the allegations of non-compliance with maintaining a Structural Digital Database (SDD), a required measure to prevent the misuse of unpublished price-sensitive information.
The adjudication process initiated by SEBI stemmed from a show cause notice issued in May 2025, which highlighted BofA Securities' failure to adhere to the regulations of insider trading.
The main allegation was that the merchant banker did not effectively maintain an SDD, an electronic record designed to track the sharing of unpublished price-sensitive information (UPSI).
This rule was instituted by SEBI in 2019 to curb information leakage within the financial markets.
During the ongoing adjudication process, BofA Securities India submitted a settlement application to SEBI in July 2025.
The company agreed to resolve the alleged violations by paying a sum of ₹58.5 lakh, thereby settling the case and concluding the regulatory proceedings.
Read More: SEBI Aims to Accelerate AIF Launches via Proposed ‘GARUDA’ System!
The establishment of the SDD requirement in 2019 came as part of SEBI's efforts to enhance the integrity of the financial markets by mitigating risks associated with insider trading.
The digital database serves as a critical tool for listed companies, intermediaries, and fiduciaries in safeguarding sensitive information, ensuring it is monitored and maintained systematically.
SEBI’s enforcement actions highlight its commitment to maintaining transparency and fairness in the Indian financial markets.
This case with BofA Securities is among several instances where SEBI has taken corrective measures to ensure compliance, thus reinforcing the regulatory framework governing insider trading practices.
The settlement between BofA Securities India and SEBI underscores the importance of adhering to insider trading norms, particularly regarding the maintenance of a structural digital database. By resolving the case with a ₹58.5 lakh settlement, the company has closed a significant chapter in regulatory compliance, underlining the emphasis on corporate governance and market integrity.
Track the stock market in Hindi. Visit Angel One News for the latest market trends, insights, and share market news in Hindi.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 12, 2026, 3:41 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
