Renewal of Recognition for AMC Repo Clearing Limited: SEBI's Decision and its Implications

Notification No. SEBI/LAD-NRO/GN/2024/164 - Dated: 15-1-2024 - Renewal of recognition to the AMC Repo Clearing Limited

The Securities and Exchange Board of India (SEBI) issued Notification No. SEBI/LAD-NRO/GN/2024/164 on January 15, 2024, concerning the renewal of recognition for AMC Repo Clearing Limited. This decision by SEBI is a significant development in the Indian securities market, particularly in the context of the clearing and settlement of repo and reverse repo transactions in debt securities.

Overview of SEBI's Notification:

1. Renewal of Recognition:

   • The notification confirms the renewal of recognition for AMC Repo Clearing Limited for a period of one year, commencing from January 17, 2024, to January 16, 2025.
   • This renewal is granted under Regulation 12 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations 2018 and is in line with the powers conferred by Section 4 and Sub-section (4) of Section 8A of the Securities Contracts (Regulation) Act 1956.

2. Conditions of Renewal:

   • The renewal is subject to the condition that AMC Repo Clearing Limited complies with the rules and conditions specified by SEBI from time to time.
   • Importantly, the notification specifies that the Clearing Corporation is restricted to undertake activities solely related to the clearing and settling of transactions in repo and reverse repo in debt securities that are dealt with or traded on a recognized stock exchange.

Full Text:

Notification No. SEBI/LAD-NRO/GN/2024/164 - Dated: 15-1-2024 - Renewal of recognition to the AMC Repo Clearing Limited

Dated: 16-1-2024