The Hindu Newspaper has interviewed Abhishek Sachdev, Managing Director of Vedanta Hedging Ltd regarding the issue of potential Interest Rate Swap Mis-Selling.
A large Indian firm called Unitech is suing Deutsche Bank over some hedging on its $150m loan. Unitech argue that the Bank ‘ did nothing either to ensure that it was experienced in dealing with such swaps, while also failing to furnish it with details on the nature and risks of taking out the contract.
Abhishek Sachdev, who has initiated the widespread coverage in the Daily / Sunday Telegraph, spoke to Vidya Ram of the Hindu and commented on the fact that this was not just an issue for UK SME’s. This was a Global Issue, concerning some of the largest real estate and corporate firms in the world.
However, it is important to understand that there are many mis-conceptions about this issue and the arguments both against and on behalf of the Banks are very complicated. Vedanta Hedging are fully authorised by the FSA to provide advice on derivatives, and are acting as Expert Witnesses on several High Court Cases.