Summary

• Bank of America recently placed two executives in India on administrative leave following a whistleblower complaint on leaking sensitive information ahead of certain block trades. But how do investment banks navigate such transactions when they cannot reveal information to potential investors?

A recent Bank of America (BofA)whistleblower complaint has underscored the complexities involved in navigating a block deal for merchant bankers at a time when such transactions have hit record highs in India.

Bank of America placed two executives in its equity capital markets team in India on administrative leave after a whistleblower complaint alleged an unauthorised leak of information to investors ahead of certain trades, according to a 9 October Wall Street Journal report.

Bank of America declined to comment. Mint has not seen the whistleblower’s complaint.

The development is significant because of the unprecedented growth in block deals over the last 2 years in India, with several private equity and venture capital firms finding exits through such transactions in the public markets. The boom in block trades has also contributed towards record fee levels for merchant banks, Mint reported earlier this month.

Read Also: Investment banker fees at record highs

Nearly $15 billion worth of block trades occurred in the Indian markets in the first half of 2024, a 150% rise from that in the same year-earlier period, according to a Bloomberg report in July.

The Bank of America...

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