SEBI settles BofA Securities SDD case for ₹58.5 lakh
→Merchant bankers must evidence SDD controls or face SEBI settlement exposure
Change
SEBI settled adjudication proceedings against BofA Securities India Limited for ₹58.5 lakh after alleging that the merchant banker failed to maintain a Structured Digital Database under the PIT Regulations.
Why it matters
The order reinforces SDD maintenance as an enforceable insider-trading control for merchant bankers. Settlement disposed of the proceedings without admission or denial, but SEBI retained the right to restore or initiate action if disclosure, undertakings or settlement terms fail. Merchant-banking compliance teams need SDD evidence that can withstand SEBI adjudication scrutiny.
Implications
- → Merchant bankers must maintain Structured Digital Databases as prescribed under PIT Regulations — failure to evidence SDD controls can trigger SEBI adjudication and settlement proceedings.
- → Compliance and legal teams at securities intermediaries must preserve settlement disclosures, undertakings and waiver compliance — SEBI can restore or initiate proceedings if those conditions fail.
- → Insider-trading control owners must keep SDD maintenance aligned with PIT Regulation 9A and merchant-banker compliance duties — the BofA settlement shows SDD gaps remain enforceable even when proceedings are resolved by settlement.
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