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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Participation of Mutual funds in repo transactions on Corporate Debt Securities

08-Jun-2023 | SEBI/HO/IMD/IMD PoD-2/P/CIR/2023/85

SEBI has issued a circular regarding the Participation of Mutual funds in repo transactions on Corporate Debt Securities, effective from 8th June 2023.

By virtue of this circular, now the Mutual Funds can participate in repos on the following corporate debt securities:
1. Listed AA and above rated corporate debt securities
2. Commercial Papers (CPs) and Certificates of Deposit (CDs)

Further, the credit rating of exposure on repo transactions for various purposes including for Potential Risk Class (PRC) matrix, liquidity ratios, and Risk-o-meter etc, the same shall be as that of the underlying securities. Also, the exposure shall not be considered for the purpose of determination of investment limits for the single issuer, group issuer, and sector-level limits for the transactions where settlement is guaranteed by a Clearing Corporation,

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