ETNs subject to regulations

Barclays Bank PLC said the iPath® MSCI India IndexSM Exchange-Traded Notes (ETNs) have been determined to be subject to certain regulations and recent circulars issued by the Securities and Exchange Board of India (SEBI) relating to offshore derivative instruments linked to Indian equity securities.

These regulations and circulars include requirements that cannot be complied with in the context of the ETNs.

As a result, SEBI has advised Barclays not to issue additional ETNs and that the positions being held in the ETNs may only continue until December 31, 2020.

Barclays previously restricted further sales from inventory and further issuances of the ETNs in 2009.

Barclays is currently considering steps to comply with the SEBI decision by December 31, 2020, and will make a further announcement in due course.

These steps may result in the ETNs ceasing to be listed and publicly traded.

This announcement may cause fluctuations in the price of the ETNs in the secondary market, and it is possible that the market price of the ETNs may at any time reflect a premium or a discount to the daily redemption value of the ETNs.

Investors should exercise extreme caution before purchasing or selling ETNs at a time when market prices are volatile or when a premium or discount to the daily redemption value exists, said Barclays. fii-news.com