SEBI has released guidelines for setting up of limited purpose clearing corporation (LPCC) by asset management companies, making it obligatory for them to contribute towards the share capital of such entities. The LPCC is an entity established to undertake the activity of clearing and settlement of repo transactions. SEBI requires AMCs contribute INR 150 crore towards share capital of LPCC in proportion to the asset under management (AUM) of open ended debt oriented mutual fund schemes.SEBI has released guidelines for setting up of limited purpose clearing corporation (LPCC) by asset management companies, making it obligatory for them to contribute towards the share capital of such entities. The LPCC is an entity established to undertake the activity of clearing and settlement of repo transactions. SEBI requires AMCs contribute INR 150 crore towards share capital of LPCC in proportion to the asset under management (AUM) of open ended debt oriented mutual fund schemes.taxmann.com Latest Statutory HappeningsRead More
