Barclays upsets Indian regulator

10th Dec 2009 12:43

The Indian branch of Barclays has been told by the local regulator to stop trading offshore derivatives, it has emerged.It is accused by the Securities & Exchange Board of India of providing incorrect and false information on clients who'd traded shares in telecoms giant Reliance Communications.The British bank must put in "adequate systems, processes and controls in place to ensure true and correct reporting". It has until 18 December to respond.But it is cooperating fully with the regulator. "We have been and will continue to co-operate fully with SEBI as it examines certain offshore derivative transactions," Barclays said in a statement late Wednesday.Investors are able to play the Indian stock market by buying participatory notes, but the regulator has been tightening the rules on these and wants brokers to be more open about the terms of the derivatives and who's buying them.