Archive · 2 Oct 2025
ARCL Director: Expand Corporate Bond Repo Market
Imagine a market where companies and banks borrow and lend money using bonds.
Right now, only certain bonds are allowed.
The head of ARCL wants to make this market bigger and better.
He wants regulators to let more investors, like mutual funds, participate and allow bonds with lower ratings.
This would help more companies get funding.
The market's already growing fast, with trading volume increasing.
The goal is to make the market even more active, so more people can easily lend and borrow money, helping the economy.
ARCL's managing director proposes regulatory changes to boost the corporate bond repo market.
He suggests allowing mutual funds to participate in repos with lower-rated bonds.
August's tri-party repo volume reached Rs 55,002 crore.
Average daily volume in August was over Rs 2,894 crore.
ARCL aims to obtain Qualified Central Counter Party (QCCP) status to encourage bank participation.
- Who
- Kashinath Katakdhond, MD of ARCL.
- What
- Advocates for regulatory changes to boost the corporate bond repo market, including allowing participation from mutual funds in repos backed by lower-rated bonds.
- When
- Recent months (August and September data cited).
- Where
- India's corporate bond repo market.
- Why
- To promote market growth, increase trading volume, and provide more options for investors and borrowers.
- Key Figure
- Kashinath Katakdhond, MD of AMC Repo Clearing Limited (ARCL)
- ARCL Role
- Offers clearing and settlement services for tri-party repos in corporate debt securities
- Regulatory Bodies
- SEBI and RBI regulate ARCL
- August Repo Volume
- Rs 55,002 crore
- Average Daily Volume (August)
- Rs 2,894 crore
- Expected Daily Volume (Next Year)
- Rs 15,000 crore