The Securities and Exchange Board of India (Sebi) has requested the Reserve Bank of India (RBI) to provide certain approvals to AMC Repo Clearing (ARCL) to facilitate the participation from banks and primary dealers (PDs), Sebi’s executive director Pramod Rao said, cited in Business Standard. ARCL was launched in July last year to boost liquidity in the corporate bond repo market.
Rao said that the volume in the corporate bond repo market has surpassed Rs 1 trillion ($11.9bn) in a year’s time. The monthly transactions on the platform are now in the range between Rs 10,000 crore and Rs 15,000 crore, he added.
“We are in dialogue with RBI to allow primary dealers and banks to participate in this (ARCL) as well as it will deepen the market. The current trade volume on ARCL has reached such levels without bank or PD participation, should only tell you there is depth even without them,” said Rao, speaking at the Global Fintech Fest.