Sunday, January 31, 2010

SEBI Raps Barclays over Misreporting Of P-Note Deals in RCom Shares

SEBI Raps Barclays over Misreporting Of P-Note Deals in RCom Shares

SEBI has issued a show-cause notice to Barclays Bank plc and directed it not to transact in any offshore derivative instrument (ODI) or participatory note (P-Note) till such time it has satisfied the regulator in India that it has put adequate systems, processes and controls in place to ensure true and correct reporting of such transactions.

Barclays has violated the provisions of foreign institutional investor (FII) regulations by furnishing false information in its numerous correspondences with regard to its ODI activity between January 2006 and January 2009 with Anil Ambani’s Reliance Communications as the underlying scrip.

Barclays Bank has suspended sales of its exchange-traded notes linked to Indian stocks after SEBI ordered the bank’s local unit to stop selling or trading ODIs. It discontinued sales of its iPath MSCI Index Exchange Traded Notes, the London-based bank said in a statement.

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