The Securities and Exchange Board of India has once again approved AMC Repo Clearing Ltd to operate as a clearing company for a period of one year till January 16, 2026.
According to a notification on SEBI’s website on Friday, the market regulator has authorized the company to clear and settle transactions related to repurchase agreements and reverse repurchase agreements in debt securities for a period of one year from January 17, 2025. Gave.
Under this regulation, AMC Repo Clearing does not engage in any activities other than the clearing and settlement of transactions in repos and reverse repos of securities traded or traded on recognized stock exchanges.
Previously, SEBI had granted approval to such clearing companies in January 2023.
In October 2020, SEBI allowed the establishment of limited purpose clearing companies for the purpose of clearing and settling repurchase transactions in debt securities.
Subsequently, in February 2021, the regulator issued guidelines requiring asset management companies to contribute Rs 150 million as share capital for setting up LPCCs by mutual funds.
SEBI’s move to allow the mutual fund industry to set up clearinghouses was aimed at addressing redemption pressures such as sudden withdrawals of funds by investors and making clearing transactions smoother, especially in the corporate bond market.
(With inputs from PTI)
