SEBI, vide its circular dated December 16, 2022 said rules pertaining to “Principles of Financial Market Infrastructures” will apply to AMC Repo Clearing Limited.
This mandates clearing corporations and depositories to comply with the Principles of Financial Market Infrastructures (PFMIs) published by the committee on payments and settlement systems and the International Organization of Securities Commissions (IOSCO).
This came after SEBI in January this year granted recognition to AMC Repo Clearing Limited as a clearing corporation for the purpose of clearing and settling transactions in repo and reverse repo in the debt securities that are traded on a stock exchange.
Further it is to be noted that in October 2020, SEBI allowed setting up of a Limited Purpose Clearing Corporation for clearing and settlement of repo transactions in debt securities.
This circular is applicable to all Recognized Clearing Corporations and Depositories.
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