NEW YORK (Reuters) -A U.S. judge ruled on Friday that Barclays must face a proposed class action by shareholders who accused the British bank of securities fraud related to its sale of $17.7 billion more debt than regulators allowed. U.S. District Judge Katherine Polk Failla in Manhattan said shareholders adequately alleged that Barclays' failure to disclose the absence of internal controls that might have caught five years of errant debt sales was a material omission of fact. She also let shareholders try to prove that Barclays and several officials including former CEO Jes Staley were "actionably reckless" in assuring that the bank complied with federal securities laws even as it "blindly" sold the debt.
"Since corporate bond yields had not risen sharply in the rate hike cycle, going ahead, they may not go down drastically," said Shameek Ray, head of debt capital markets at ICICI Securities Primary Dealership.
Companies had raised around 285.5 billion rupees ($3.43 billion) until Oct. 29, the lowest since September 2018, and well below the 729.5 billion rupees in the previous month, data from Prime Database showed.
Indian states will raise 270 billion rupees ($3.25 billion) through a sale of bonds later in the day, while New Delhi will mop up 390 billion rupees on Friday. Indian money markets will remain shut on Thursday for holiday.