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Sebi to set up fund to buy stressed corporate bonds: FM Sitharaman

The new fund will be set up as an alternative investment fund

nirmala sitharaman

Union Finance Minister Nirmala Sitharaman | File photo: PTI

Nikunj Ohri New Delhi
The Securities and Exchange Board of India will set up Corporate Debt Market Development Fund (CDMDF) to provide liquidity to mutual funds and other participating institutional investors in the corporate bond market, Finance Minister Nirmala Sitharaman said.

As the financial sector evolves from a bank-dominated system to a market-oriented system, supporting financial markets has become an important aspect, Sitharaman said. “Hence a permanent arrangement of an SPV facility is considered for providing liquidity, so that they can act as the buyer of the last resort, during stress times, and to some extent even acting as a market maker during times

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First Published: Mar 25 2021 | 5:48 PM IST

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