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The Securities and Exchange Board of India (Sebi) on Tuesday laid down the operational framework to allow transactions in debt securities that have defaulted on maturity-linked payments.
Experts say the move can help mutual funds (MFs) sell debt papers, which have defaulted to distressed funds. “Enabling this could help develop a distressed market in India in the future. A distressed fund can be sold the stressed asset at marked-down valuations,” said a debt fund manager.
“Within two working days from the date of intimation from issuer or debenture trustee(s) that issuer has defaulted on its payment obligations, the depositories in
