SEBI lifts ban from Barclays for issuing derivatives

BaracklaySEBI has removed that ban that it had imposed on British bank, Barclays from issuing offshore derivative instruments.

This approval from the market regulator will allow the British bank to facilitate more investment from unregistered entities and would allow more foreign investment to come to Indian markets.

SEBI had imposed the ban in December last year because Barclays had failed to provide "true and accurate picture of transactions", which are mandatory as per Indian regulations.

In a filing SEBI said, "The deficiencies in the systems and processes of Barclays have now been remedied ... The ex-parte directions issued against Barclays Bank PLC vide the order dated December 9, 2009, shall stand revoked with immediate effect.”

And now, since the regulator has seen that the bank has streamlined all the needed information and its own operations, it has given the needed approval.

ODIs are investment vehicles that are given to foreign investors who are unregistered and who want to park their funds in the Indian equities.

There were four cases against Barclays in 2006 which dealt with the assets of Reliance Communications and its assets.