Derivatives trading lands Barclays with Indian ban
India's financial watchdog has suspended Barclays from offering derivatives that allow foreign investors to trade in Indian shares.
The Securities & Exchange Board of India (Sebi) said it had barred Barclays from offering offshore derivatives because of a failure to provide a "true and accurate picture of transactions". It also said that the bank had "violated the provisions of FII Regulations by furnishing false and incorrect information to Sebi".
The regulator acted as a result of trading through "participatory notes" in Reliance Communications, the mobile telephone operator that is controlled by the Indian billionaire Anil Ambani.
Such notes are used by many investors to gain exposure to Indian stocks without having to register with Sebi. However, the regulator does require that it is kept informed of the owners of such derivatives.
Barclays has been given until 18 December to respond to the ban. The bank has also been told that it must appoint an auditor "of international standing" to approve its internal systems.
The Sebi said that Barclays' alleged misdemeanours occurred between January 2006 and January 2008.
Sebi tightened its rules on the instruments following the collapse of Lehman Brothers, the US investment bank, which led to a huge outflow of capital from the country from foreign investors, many of whom had been making use of the notes.
Yesterday, the bank said: "Barclays confirms that it received notification from the Sebi of a 'Show Clause Notice' on 9 December.
"Since receiving Sebi's original email request of 24 September 2009, we have been and will continue to co-operate fully with Sebi as it examines certain offshore derivative transactions."
- 1 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 The Visit: Trailer for M Night Shyamalan's latest horror film is terrifying
- 5 9/11: Iranian General accuses US of organising September 11 terror attacks
General Election 2015: Tories sack candidate who said she would never support 'the Jew' Ed Miliband
9/11: Iranian General accuses US of organising September 11 terror attacks
General Election 2015: Stephen Hawking says he will vote Labour
Manny Pacquiao begs Indonesia president to spare life of drug smuggler Mary Jane Veloso about to be executed
Yazidi sex slaves undergoing surgery to 'restore virginity' after being raped by Isis militants
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
HSBC review into moving headquarters from UK 'underway'
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...