The Credit Suisse AT-1 bonds controversy has continued since its write-down in 2023. Recent journalistic work reveals a controversy involving Non-Resident Indian (NRI) Customers of HDFC Bank, in relation to the sale of these bonds. The write-down caused substantial losses to the NRI Customers. The reports in the public domain describing customer complaints have alleged largely two types of claims i.e., unlicensed activity by HDFC and mis-selling of the AT-1 bonds.
This controversy was litigated in India by few customers but is likely to be resolved within the Asian international disputes corridor, before the Dubai International Financial Centre (DIFC) or a combination of the Bahrain International Commercial Court (BICC) and Singapore International Commercial Court (SICC).
This insight examines the potential claims that the investors may level against HDFC, and the potential defences that HDFC may raise against these claims. It further examines various potential options, including collective case management, interim reliefs, pre-disclosure action, and claims for damages (including treble damages and exemplary damages). Finally, we consider the practical issue of access to justice in a dispute that is likely to be costly and document-intensive, including the DIFC Pro Bono Programme and litigation finance.