Sebi decided to set up a corporate debt market development fund in the form of an AIF with an initial corpus of Rs 3,000 crore to act as a backstop facility for purchase of grade corporate debt securities during times of Stress.The move is aimed at instilling confidence amongst the participants in the corporate bondmarketand to generally enhance Secondary Market liquidity.
CDMDF, based on a guarantee to be provided by National Credit Guarantee Trust Company (NCGTC) may raise funds, for purchase of corporate debt securities during market dislocation.