Denying, for example, being caught in local (8)
I believe the answer is:
negative
'denying' is the definition.
(I've seen this before)
'example being caught in local' is the wordplay.
'example' becomes 'eg'.
'being caught in' indicates putting letters inside.
'local' becomes 'native' ('native' can be similar in meaning to 'local').
'eg' put into 'native' is 'NEGATIVE'.
'for' is the link.
(Other definitions for negative that I've seen before include "Film with images reversed" , "Not positive - denial" , "Expressing refusal, denial or disagreement" , "Piece of photographic film" , "thumbs down" .)