Barclays is facing investors' anger for mishandling the bond issue of India-based Bollywood film group Eros, This is Money reports.
The investors have approached the Financial Conduct Authority and the Financial Ombudsman claiming they incurred losses due to Barclays' tardiness in dealing with the Eros flip-flop over its bond buyback plan.
The Bollywood entertainer had come out with a £50million bond issue, but last March it told investors that it would buy back up to half of its bonds at 60 pence each.
However, in a few weeks Eros changed its mind and told bondholders they could have their bonds back.
While other platforms such as Hargreaves Lansdown and AJ Bell returned bonds to investors within days, for Barclays it took nearly nine months.
Customers on Barclays' Smart Investor platform are still unable to trade them.
During this period Eros bonds slumped to 12p from 32p, thereby putting Barclays customers at a huge disadvantage.
The bank also delayed paying interest on the bonds.
Barclays said it went by the rules, and blamed American lender Citi for the delay, as it acts as the custodian for Eros bonds owned by Barclays customers.
It claims that Citi informed them that funds were not immediately available. Citi has refused to comment.
Barclays also sent out erroneous information to customers and miscalculated the value of bondholders' investments.
Last week, Eros again reneged on a proposal to buy back some of its bonds.
The company had offered to buy £2 million of bonds by March 31 but admitted its inability to do so hours before the market closure on Thursday.
Dharavi slum in Mumbai
During the hearing, Clifford denied all the charges except for the rape charge, which was added to the indictment at the session. (Photo: Hertfordshire Police /Handout via REUTERS)
Man pleads not guilty to murder of BBC presenter's family
A 26-year-old man has pleaded not guilty to charges of murdering the wife and two daughters of BBC sports commentator John Hunt in a crossbow and knife attack.
Kyle Clifford, who also faces charges of rape, appeared via video link at Cambridge Crown Court on Thursday.
Clifford, arrested in July after a manhunt, is charged with three counts of murder, one count each of rape and false imprisonment, and two counts of possessing offensive weapons – a 10-inch knife and a crossbow.
During the hearing, Clifford denied all the charges except for the rape charge, which was added to the indictment at the session.
He is expected to enter a plea for that charge at a later date.
The victims were Carol Hunt, 61, wife of horseracing commentator John Hunt, and their daughters Louise, 25, and Hannah, 28.
An earlier hearing revealed that Louise had been found tied up and that both she and her sister had been shot with a crossbow, while their mother had been stabbed with a knife.
The fatal attack occurred at the family’s home in Bushey, a commuter town near Watford, northwest of London.
(With inputs from AFP)