Recognition of AMC Repo Clearing Limited (ARCL)

Limited Purpose Clearing Corporation (LPCC) has been set up for the purpose of clearing and settlement of corporate bond repo transactions and to develop an active repo market, SEBI Board, during September 2020, permitted the setting up of a Limited Purpose Clearing Corporation (LPCC). Accordingly, SEBI, vide circular dated February 02, 2022, pave the way for establishment of LPCC by AMCs of Mutual Funds. The LPCCs are expected to help improve liquidity in the underlying corporate bond market.