New clearing houses for OTC debt instruments

Our Bureau Updated - November 14, 2017 at 03:32 PM.

SEBI has directed all SEBI-regulated entities — FIIs, foreign venture capital investors and mutual funds to shift the clearing and settlement of the over-the-counter-trades in debt instruments, commercial paper (CP) and certificates of deposits (CD) to National Securities Clearing Corporation Ltd and Indian Clearing Corporation Ltd with effect from April 1.

“Debt instruments contribute more than two thirds of the industry assets under management (AUM). Considering the overall debt AUM as on January 31 at Rs 4.45 lakh crore, the shift would be significant,” said a CEO of a mutual fund.

> raghavendrarao.k@thehindu.co.in

Published on March 5, 2012 17:01