Multi-level matrix converter (MMC) is a three phase ac-ac converter that can synthesize three or more levels at the output voltage while maintaining desired input power factor. In this paper a new converter, Capacitor clamped Multi-level Matrix converter (CMMC) has been proposed as an addition to the MMC family. In comparison to conventional matrix converter, the CMMC offers an additional level at the output voltage. This leads to lower THD and voltage stress. This additional voltage is obtained by means of clamp capacitors which are maintained at half of input line to line voltages. An indirect space vector based modulation strategy is presented for generating desired output voltage at desired input power factor while balancing the clamp capacitor voltage at desired voltage level. The effectiveness of the proposed converter has been verified by means of numerical simulation.