The market regulator had initiated adjudication proceedings against the company for alleged violations of provisions under the SEBI (Prohibition of Insider Trading) Regulations, 2015, as well as the SEBI (Merchant Bankers) Regulations, 1992.
The allegations stemmed from a failure to maintain a Structured Digital Database (SDD) as prescribed under insider trading norms.
A show cause notice was issued to the company on May 26, 2025, asking why an inquiry should not be conducted and penalty imposed under the SEBI Act, 1992.
Pending adjudication, BofA Securities India filed a settlement application on July 1, 2025, seeking to resolve the matter without admitting or denying the findings.
Following discussions with SEBI’s internal committee and a review by the High Powered Advisory Committee (HPAC), the regulator recommended settlement of the case upon payment of ₹58.5 lakh. The recommendation was subsequently approved by SEBI’s panel of whole-time members on April 2, 2026.
The company confirmed remittance of the settlement amount on May 4, 2026, following which SEBI disposed of the adjudication proceedings in terms of the settlement regulations.
The order clarified that the settlement is without prejudice to SEBI’s right to initiate or restore proceedings if it finds that the company has not made full disclosures or has violated any undertakings.
The settlement order came into effect immediately.
