AMCs to contribute Rs. 150 crore capital for limited purpose clearing corp: Sebi

MUMBAI: The Securities and Exchange Board of India (Sebi) today notified that asset management companies will contribute Rs 150 crore as capital for setting up a limited purpose clearing corporation.

Sebi in its board meeting in September had approved a proposal to set up a limited purpose clearing corporation for clearing and settling of repo transactions in corporate debt securities on advice of the working group constituted under the Mutual Fund Advisory Committee.

The capital market regulator said that Rs 150 crore in capital will be contributed by AMCs in proportion to the asset under management in each AMC’s open-ended debt funds.


The contribution shall be based on average AUM of debt-oriented schemes as detailed above for the financial year 2019-20. In this regard, Association of Mutual Funds in India shall calculate contribution per AMC based on the average AUM and inform all AMCs, the circular said.

Accordingly, it will be obligatory on the part of an AMC to contribute towards the share capital of the limited purpose clearing corporation, Sebi said.