spot_imgspot_img
HomeEnglish NewsTop News StoriesSebi Renews Recognition To AMC Repo Clearing For One Year

Sebi Renews Recognition To AMC Repo Clearing For One Year

Published on

spot_imgspot_img

Last Updated: March 16, 2023, 14:14 IST

Earlier, the Securities and Exchange Board of India (Sebi) granted recognition to such clearing corporations in January last year.

The regulator has granted renewal of recognition for one year commencing on January 17, 2023

Markets regulator Sebi has renewed recognition to AMC Repo Clearing Ltd as a clearing corporation for one year for the purpose of clearing and settling transactions in repo and reverse repo in the debt securities.

The regulator has granted renewal of recognition for one year commencing on January 17, 2023 and ending on January 16, 2024, according to a notification uploaded on Sebi’s website on Thursday.

Under the rules, AMC Repo Clearing Ltd will not undertake any activity except that of clearing and settling of transactions in repo and reverse repo in the debt securities that are dealt with or traded on a recognised stock exchange.

Earlier, the Securities and Exchange Board of India (Sebi) granted recognition to such clearing corporations in January last year.

In October 2020, the regulator allowed setting up of a Limited Purpose Clearing Corporation (LPCC) for clearing and settlement of repo transactions in debt securities. Subsequently, in February 2021, the regulator issued guidelines wherein asset management companies (AMCs) were required to contribute Rs 150 crore as share capital for setting up of LPCC by mutual funds.

The decision to allow the mutual fund industry to set up LPCC was aimed at helping fund houses in tackling redemption pressure and settle transactions in corporate bond market.

Read all the Latest Business News here

(This story has not been edited by News18 staff and is published from a syndicated news agency feed)

Latest articles

Video: People in Pakistan’s Peshawar jostle over free flour amid economic crisis | World News

In a video shared widely on social media, many Pakistanis in Peshawar were seen...

Australian Man Hits Jackpot With 4.6 Kilograms Gold Nugget

Last Updated: March 29, 2023, 18:48 ISTThe gold specimen is named Lucky Strike Nugget.”...

Wishes, Images, Messages and Greetings in English, Hindi, Marathi and Telugu to Share on the Last Day of Chaitra Navratri

HAPPY RAM NAVAMI IMAGES, SMS, WISHES QUOTES, STATUS, MESSAGES: Ram Navami is a significant...

Molecule Neutralising SARS-CoV-2 Virus Found, Could Reduce Infection Duration Upon Exposure

In the experimentation phase, the team selected the top 15 molecules that disrupted the...