Barclays Bank PLC (“Barclays”) announced today that the iPath®
MSCI India IndexSM Exchange-Traded Notes (the “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.
For more information on what a premium or discount in the market
prices represents, please refer to the iPath website under “About
ETNs”. Investors are also encouraged to refer to the prospectus
relating to the ETNs for risk factors relating to the secondary
market for the ETNs and the market value of the ETNs, including the
risks associated with a premium or discount in market prices.
The ETNs are riskier than ordinary unsecured debt securities and
have no principal protection. The ETNs are unsecured debt
obligations of the issuer, Barclays Bank PLC, and are not, either
directly or indirectly, an obligation of or guaranteed by any third
party. An investment in the ETNs involves significant risks,
including possible loss of principal and may not be suitable for
all investors.
Daily redemptions at the option of the holders of the ETNs
continue to stay open. The prospectus relating to the ETNs can be
found on EDGAR, the SEC website at: www.sec.gov, as well as on the
product website at www.iPathETN.com.
Barclays Bank PLC is the issuer of iPath® ETNs and Barclays
Capital Inc. is the issuer’s agent in the distribution.
For further information, please contact the Barclays ETN desk at
1-212-528-7990.
Selected Risk Considerations
An investment in the iPath ETNs described herein involves risks.
Selected risks are summarized here, but we urge you to read the
more detailed explanation of risks described under “Risk Factors”
in the applicable prospectus supplement and pricing supplement.
You May Lose Some or All of Your Principal: The ETNs are
exposed to any decrease in the level of the underlying index
between the inception date and the applicable valuation date.
Additionally, if the level of the underlying index is insufficient
to offset the negative effect of the investor fee and other
applicable costs, you will lose some or all of your investment at
maturity or upon redemption, even if the value of such index has
increased. Because the ETNs are subject to an investor fee and any
other applicable costs, the return on the ETNs will always be lower
than the total return on a direct investment in the index
components. The ETNs are riskier than ordinary unsecured debt
securities and have no principal protection.
A Trading Market for the ETNs May Not Develop: Although
the ETNs are listed on NYSE Arca, a trading market for the ETNs may
not develop and the liquidity of the ETNs may be limited, as we are
not required to maintain any listing of the ETNs.
Governmental Actions: SEBI may at any time implement
changes to the regulation of certain types of instruments linked to
the equity securities of Indian companies. If future legislation or
policies implemented by the Indian government, including SEBI,
affects issuance or sale of the ETNs or our hedging with respect to
the ETNs, the market for the ETNs could be further adversely
affected.
No Interest Payments from the ETNs: You will not receive
any interest payments on the ETNs.
Credit of Barclays Bank PLC: The ETNs are unsecured debt
obligations of the issuer, Barclays Bank PLC, and are not, either
directly or indirectly, an obligation of or guaranteed by any third
party. Any payment to be made on the ETNs, including any payment at
maturity or upon redemption, depends on the ability of Barclays
Bank PLC to satisfy its obligations as they come due. As a result,
the actual and perceived creditworthiness of Barclays Bank PLC will
affect the market value, if any, of the ETNs prior to maturity or
redemption. In addition, in the event Barclays Bank PLC were to
default on its obligations, you may not receive any amounts owed to
you under the terms of the ETNs.
Market and Volatility Risk: The market value of the ETNs
may be influenced by many unpredictable factors and may fluctuate
between the date you purchase them and the maturity date or
redemption date. You may also sustain a significant loss if you
sell your ETNs in the secondary market. Factors that may
influence the market value of the ETNs include prevailing market
prices of the U.S. and Indian stock markets, the index components
included in the underlying index, and prevailing market prices of
options on such index or any other financial instruments related to
such index; and supply and demand for the ETNs, including economic,
financial, political, regulatory, geographical or judicial events
that affect the level of such index or other financial instruments
related to such index.
Restrictions on the Minimum Number of ETNs and Date
Restrictions for Redemptions: You must redeem at least 50,000
ETNs of the same issue at one time in order to exercise your right
to redeem your ETNs on any redemption date. You may only redeem
your ETNs on a redemption date if we receive a notice of redemption
from you by certain dates and times as set forth in the pricing
supplement.
Uncertain Tax Treatment: Significant aspects of the tax
treatment of the ETNs are uncertain. You should consult your own
tax advisor about your own tax situation.
Barclays Bank PLC has filed a registration statement
(including a prospectus) with the SEC for the offering to which
this communication relates. Before you invest, you should
read the prospectus and other documents Barclays Bank PLC has filed
with the SEC for more complete information about the issuer and
this offering. You may get these documents for free by
visiting www.iPathETN.com or EDGAR on the SEC website at
www.sec.gov. Alternatively, Barclays Bank PLC will
arrange for Barclays Capital Inc. to send you the prospectus
if you request it by calling 212-528-7990, or you may request
a copy from any other dealer participating in the
offering.
The ETNs may be sold throughout the day on the exchange through
any brokerage account. There are restrictions on the minimum number
of ETNs you may redeem directly with the issuer as specified in the
applicable prospectus. Commissions may apply and there are tax
consequences in the event of sale, redemption or maturity of ETNs.
Sales in the secondary market may result in significant
losses.
The MSCI indexes are the exclusive property of MSCI Inc.
(“MSCI”). MSCI and the MSCI index names are service mark(s) of MSCI
or its affiliates and have been licensed for use for certain
purposes by Barclays Bank PLC. The financial securities referred to
herein are not sponsored, endorsed, or promoted by MSCI, and MSCI
bears no liability with respect to any such financial securities.
The Pricing Supplement contains a more detailed description of the
limited relationship MSCI has with Barclays Bank PLC and any
related financial securities. No purchaser, seller or holder of
this product, or any other person or entity, should use or refer to
any MSCI trade name, trademark or service mark to sponsor, endorse,
market or promote this product without first contacting MSCI to
determine whether MSCI’s permission is required. Under no
circumstances may any person or entity claim any affiliation with
MSCI without the prior written permission of MSCI.
© 2016 Barclays Bank PLC. All rights reserved. iPath, iPath ETNs
and the iPath logo are registered trademarks of Barclays Bank PLC.
All other trademarks, servicemarks or registered trademarks are the
property, and used with the permission, of their respective
owners.
NOT FDIC INSURED · NO BANK GUARANTEE · MAY
LOSE VALUE
Barclays is a transatlantic consumer, corporate and investment
bank offering products and services across personal, corporate and
investment banking, credit cards and wealth management, with a
strong presence in our two home markets of the UK and the US. With
over 325 years of history and expertise in banking, Barclays
operates in over 40 countries and employs approximately 130,000
people. Barclays moves, lends, invests and protects money for
customers and clients worldwide. For further information about
Barclays, please visit our website home.barclays
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version on businesswire.com: http://www.businesswire.com/news/home/20161007005801/en/
Press:Barclays Bank PLCAndrew Smith, +1 212 412
7521andrew.x.smith@barclays.com
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