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.