Barclays says cooperating with India regulator on derivatives

December 10, 2009

    MUMBAI, Dec 10 (Reuters) – Barclays <BARC.L> said on Thursday it was cooperating with the Securities and Exchange Board of India (SEBI), a day after the Indian regulator barred the British bank from transacting new offshore derivative instruments.
   SEBI said in an order on Wednesday that Barclays had not correctly disclosed details of the derivatives that are used by foreign investors to buy Indian equities.
   The order will stand until Barclays shows it has adequate systems and controls in place for disclosing transactions in offshore derivative instruments, SEBI said.
   “Since receiving SEBI’s original e-mail request of 24 September 2009, we have been and will continue to cooperate fully with SEBI as it examines certain offshore derivative transactions,” Barclays said in a statement.
   Barclays is a registered foreign institutional investor in India and has to provide SEBI information about offshore derivative instruments that it transacts.
   SEBI has said its order may also be treated as a show cause notice, and Barclays could reply to it before Dec. 18.
   The regulator said it had sought information in late September from Barclays about four offshore derivative instruments that had been issued between January 2006 and January 2008. (Reporting by Pratish Narayanan; Editing by Ranjit Gangadharan and Ian Geoghegan) ((; +91 22 6636 9202; Reuters Messaging: ((If you have a query or comment on this story, send an email to
Thursday, 10 December 2009 06:34:51RTRS [nBOM206972] {C}ENDS

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