The Bombay Stock Exchange (BSE) on April 19, 2023, issued a notification regarding contributions by eligible Issuers of debt securities to the Settlement Guarantee Fund of the Limited Purpose Clearing Corporation for repo transactions in debt securities.
The SEBI Board in its meeting held on September 29, 2020, permitted the setting up of a Limited Purpose Clearing Corporation (LPCC) for clearing and settling repo transactions in debt securities. The Board, among other things, also decided that an amount of 0.5 basis points of the issuance value of debt securities per annum be collected upfront prior to the listing of such securities in order to build the Settlement Guarantee Fund of the LPCC.
The circular shall come into force for the offer documents filed on or after May 01, 2023.
[Notification No.20230419-34]
