Corporate Debt Market Development Fund (hereinafter referred to as ‘CDMDF’ or ‘the fund’) has been set-up under Chapter III-C of SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations) to act as a Backstop Facility for purchase of investment grade corporate debt securities, to instill confidence amongst the participants in the Corporate Debt Market during times of stress and to generally enhance secondary market liquidity by creating a permanent institutional framework for activation in times of market stress.
A separate framework has been laid down for CDMDF under chapter III-C of Regulation 19 of AIF Regulations, the fund has been set-up with the broader economic objective of development of the corporate bond market, inter-alia, to act as a Backstop facility during times of market stress.
It is clarified that CDMDF falls under Category I AIF in terms of Regulation 3(4)(a) of AIF Regulations.
Link- https://www.sebi.gov.in/legal/circulars/dec-2024/classification-of-corporate-debt-market-development-fund-cdmdf-as-category-i-alternative-investment-fund_89928.html
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