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‘Tri-Party Repo Market platform’
June 15 , 2018
2146 days
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- National Stock Exchange (NSE) has launched a ‘Tri-party Repo Market Platform’ in its debt segment for the repurchase of the corporate debt security.
- It is a repo contract where a third entity, apart from the borrower and lender, called tri-party agent acts as an intermediary to facilitate services like collateral selection, payment, and settlement, custody, and management during the life of the transaction.
- It provides an opportunity to borrow against the securities and provides short-term liquidity to participants.
- This would increase demand for corporate bonds and may provide a boost to much needed liquidity in the corporate bond market.
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