Friday, December 11, 2009

Barclays Bank gets away scot free!

My previous post about how India has a legal system, but an utterly useless one (useful one, I guess, if you can manipulate the end game)is proved by what SEBI has done(?) to Barclays Bank, which deliberately screwed up data and accomodated people it should not through the notorious and obnoxious P Note route in to Indian markets.
SEBI's actions reminds me of my childhood, when my mother would admonish me by saying " Please do not do it in future". How can SEBI let go of an offender like Barclays? Who took the call? Why? What did SEBI get in return?
Interestingly, all the money through the culpable PNotes, were invested in to R Com (Reliance COmmunications of the ADAG Group). Is that why there is no punishment?
SEBI has to explain this.
This was a great opportunity to tell Barclays that it can no longer deal in Indian capital markets in any capacity. Broker, Investor or Investment Banker.
The guys at Barclays must be laughing their guts out at the rap on the knuckle delivered by SEBI.

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