Sebi renews recognition to AMC Repo Clearing for one year
markets regulator Sebi has renewed its recognition to AMC Repo Clearing Ltd as a clearing corporation for one year for clearing and settling transactions in repo and reverse repo in debt securities. The regulator has granted renewal of recognition for one year starting from January 17, 2024 till January 16, 2025, according to a notification uploaded on Sebi's website on Tuesday.
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, Sebi 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.
