Last Updated: March 16, 2023, 14:14 IST
Earlier, the Securities and Exchange Board of India (Sebi) granted recognition to such clearing companies in January final yr.
The regulator has granted renewal of recognition for one yr commencing on January 17, 2023
Markets regulator Sebi has renewed recognition to AMC Repo Clearing Ltd as a clearing company for one yr for the aim of clearing and settling transactions in repo and reverse repo within the debt securities.
The regulator has granted renewal of recognition for one yr commencing on January 17, 2023 and ending on January 16, 2024, in accordance with a notification uploaded on Sebi’s web site on Thursday.
Under the foundations, AMC Repo Clearing Ltd won’t undertake any exercise besides that of clearing and settling of transactions in repo and reverse repo within the debt securities which might be handled or traded on a recognised inventory alternate.
Earlier, the Securities and Exchange Board of India (Sebi) granted recognition to such clearing companies in January final yr.
In October 2020, the regulator allowed organising of a Limited Purpose Clearing Corporation (LPCC) for clearing and settlement of repo transactions in debt securities. Subsequently, in February 2021, the regulator issued pointers whereby asset administration firms (AMCs) had been required to contribute Rs 150 crore as share capital for organising of LPCC by mutual funds.
The choice to permit the mutual fund trade to arrange LPCC was geared toward serving to fund homes in tackling redemption strain and settle transactions in company bond market.
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