AMC scouting for corp bond repo participants
AMC Repo Clearing has reached out to some of India's largest companies as well as major provident funds, insurers and primary dealers as it seeks their active participation on its corporate bond repo platform, which aims to provide smoother access to capital for firms. The newly-launched clearing corporation, which at present has a Core Settlement Guarantee Fund of ₹50-55 crore, is confident of building a strong base of borrowers as several large companies are getting registered, a source said.AMC Repo is targeting daily trade volumes of ₹20,000 crore to ₹25,000 crore over the next couple of years, the source said.
«On the borrowing side, they have spoken to some of the biggest names, cutting across sectors, to bring them to the platform. Discussions are on with upper-layer NBFCs as well as market-making institutions like primary dealers.
Right now, the issue is that there are fewer borrowers,» the source said. The website of AMC Repo lists 128 eligible issuers, which include the State Bank of India, Adani Ports and Special Economic Zone, Bharat Petroleum Corporation, HDFC Bank, Reliance Industries, Indian Oil Corporation, Larsen & Toubro, Shriram Finance, Tata Steel and Power Finance Corporation.
On July 28, finance minister Nirmala Sitharaman launched the 'triparty repo' in corporate bonds offered by AMC Repo, which is focused on establishing a market for short-term borrowing against corporate debt. The launch comes amid progress in the government's long-standing aim of deepening the corporate bond market.
On the day of the launch, the total traded value was reported at ₹480 crore. A triparty repo is a type of contract that includes a third party, which acts as an intermediary between two entities looking to lend and
. Read more on economictimes.indiatimes.com
