An indirect capacitor clamped multi-level matrix converter has been proposed in this paper. In comparison to the conventional matrix converter the proposed converter makes available half line voltages in addition to the line voltages at the converter output. This increased level comes at the cost of additional bi-directional switches and clamp capacitor. Indirect space vector modulation scheme, for synthesizing the required input current and the output voltage while balancing the clamp capacitor voltage, is presented. This converter offers reduced THD and lower switching stress compared to conventional matrix converter. The effectiveness of the proposed converter has been verified by means of simulation.