SEBI Issues Settlement Order to BofA Securities After Alleged PIT Compliance Failure; ₹58.5 Lakh Paid
SEBI (Securities and Exchange Board of India) has issued a formal Settlement Order to BofA Securities India Limited regarding alleged violations of market regulations. The resolution concludes adjudication proceedings related to the firm's adherence to insider trading protocols.The settlement, finalized by the Adjudicating Officer on May 11, 2026, resolves the matter without BofA Securities admitting or denying the core findings.
Basis for SEBI Adjudication Proceedings
SEBI initiated the proceedings against BofA Securities India Limited under the SEBI Act, 1992. The primary allegations centered on the violation of key provisions of the SEBI (Prohibition of Insider Trading) Regulations, 2015.Specifically, the proceedings targeted the alleged breach of the PIT Regulations and certain clauses within the SEBI (Merchant Bankers) Regulations, 1992. The core compliance lapse identified was the failure of the merchant banker to maintain a Structured Digital Database (SDD) as mandated by the PIT Regulations.
Following the issuance of a Show Cause Notice (SCN) on May 26, 2025, the applicant was called upon to demonstrate why no penalty should be imposed for the alleged lapses.
Regulatory Path to Settlement
The adjudication process moved through several internal committees before reaching a final agreement. Initially, the applicant filed a settlement application with SEBI bearing Settlement Application No. 8601/2025.After meetings held on January 19, 2026, the proposed settlement terms were revised and reviewed by the High Powered Advisory Committee (HPAC). The HPAC, in its meeting on February 20, 2026, subsequently recommended a specific settlement amount.
The Panel of Whole Time Members of SEBI approved this recommendation on April 02, 2026. BofA Securities subsequently confirmed the remittance of the settlement amount on May 04, 2026.
Final Settlement Terms and Compliance Mandate
In view of the successful acceptance of the settlement terms and the confirmation of the receipt of funds, SEBI disposed of the adjudication proceedings. The total settlement amount agreed upon was INR 58,50,000/- (Rupees Fifty-Eight Lakh Fifty Thousand Only).The Settlement Order confirms that the proceedings initiated via the SCN dated May 26, 2025, are hereby concluded.
However, the order contained stringent caveats regarding future compliance. The settlement does not absolve SEBI of its right to take enforcement actions. These actions can be initiated if BofA Securities fails to make a full and true disclosure, or if the firm violates the undertakings agreed upon.
The settlement order remains effective immediately, underscoring the continuous compliance monitoring by the regulatory body.
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