Sebi Renews AMC Repo Clearing Recognition for One Year

The Securities and Exchange Board of India (Sebi) has renewed the recognition of AMC Repo Clearing Ltd as a clearing corporation until January 16, 2026. This allows the company to continue clearing and settling repo and reverse repo transactions in debt securities, operating under strict guidelines set by Sebi.

The Securities and Exchange Board of India (Sebi) has renewed the recognition of AMC Repo Clearing Ltd as a clearing corporation for an additional year, extending the validity through January 16, 2026. This move ensures the continuity of clearing and settling repo and reverse repo transactions in debt securities.

The official announcement, made via a notification on Sebi's website, marks the renewal starting January 17, 2025. The renewal affirms AMC Repo Clearing Ltd's role under the stipulation of engaging exclusively in the clearing and settling of transactions concerning debt securities on recognised stock exchanges.

This extends a framework initiated in October 2020 when Sebi permitted the establishment of Limited Purpose Clearing Corporations (LPCCs). In 2021, guidelines mandated asset management companies to invest Rs 150 crore for the creation of LPCCs by mutual funds, aiming to ease redemption pressures in the corporate bond market.

(With inputs from agencies.)