The Securities and Exchange Board of India has banned Barclays Bank from issuing offshore derivative instruments due to reports of disclosure violations, media reports said.

According to one report in the Wall Street Journal, SEBI found questionable entries in the disclosures involving 4 ODIs issued in 15 December 2006 under Reliance Communications Ltd. ODIs are commonly used by overseas investors to purchase India-based derivatives or stocks.

Barclays had reportedly documented the issuance under UBS AG, when it had actually issued to a UK firm, Hythe Securities. The publication also said that Hythe subsequently issued the securities to another company. Under SEBI rules, all levels of ODI issuances should be reported to the regulator.

WealthBriefing Asia had contacted the bank on the matter but the latter had opted to delay commenting until after it has studied the issue more thoroughly.