ARCL executes first tripartite repo in corporate debt

AMC Repo Clearing Limited (ARCL) executed its first term repo transaction on its tri-party repo in corporate debt platform with a seven-day repo at an yield of 7 percent per annum for a value of Rs 50 crore.

ARCL Tri-party repo product in corporate debt securities was launched by Finance minister Nirmala Sitharaman in July last year.

Tri-party repo in corporate debt securities has seen a steady growth over the last 5 months, The average daily volume has increased from Rs. 526 Crores in the month of February 2024 to Rs 949 crores in the month of May 2024


The transaction cost of tri-party repo in corporate debt securities is comparatively higher than the transaction cost of tri-party repo in government securities due to brokerage cost, small trade size etc.

The term repo is expected to help participants to reduce the overall transaction cost of tri-party repo in corporate debt securities.

AMC Repo Clearing Limited (ARCL), is a limited purpose clearing corporation promoted by mutual funds managing debt assets.

ARCL is also authorized by Reserve Bank of India to provide the central counterparty services (CCP) for tri-party repo in corporate debt securities under Payment & Settlement Systems Act, 2007. RBI has also authorized ARCL to act as Tri-party Repo agent for repo transactions in corporate debt securities.

The repo market in India is primarily an overnight market. The term repo in corporate debt securities will ensure lower cost of transaction for borrowing and lending for participants. Further, borrowers will be assured of liquidity for longer tenors.