Capital markets regulator Sebi has amended stock brokers’ rule concerning registration of entities for participation in the tri-party repo segment for corporate bonds, a move that will boost liquidity in the segment.
“No separate registration shall be required for any person registered with the limited purpose clearing corporation as a participant for participating in the tri-party repo segment for undertaking proprietary trades in corporate bonds,” the Securities and Exchange Board of India (Sebi) said in a notification issued on Monday.
The move came after the board of Sebi last month approved the proposal to additionally facilitate participation by entities desiring direct participation (not through a clearing member) in repo transactions in corporate bonds of the Limited Purpose Clearing Corporation (LPCC).
LPCC is an entity established to undertake the activity of clearing and settlement of repurchase agreement transactions.
It is expected to facilitate active trading, especia
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