Two years on, limited-purpose clearing corp to see light of the day

AMC Repo Clearing set to begin ops later this month; move to boost debt market liquidity

A limited-purpose clearing corporation (LPCC) backed by the Securities and Exchange Board of India (Sebi) and funded by asset management companies (AMCs) is set to become operational by the third week of June after over two years of its incorporation, said people in the know.

Known as AMC Repo Clearing (ARCL), the LPCC has onboarded over 125 issuers for the initial stage of operation. Since ARCL has now obtained the final approvals from the Reserve Bank of India (RBI), it will start offering clearing and settlement services for all tri-party repo in corporate debt securities to boost liquidity and participation.