Corporate Debt Market Development Fund (CDMDF):
The Union Finance Minister launched the Corporate Debt Market Development Fund (CDMDF).
- Corporate Debt Market Development Fund is a backstop facility for specified debt funds during market dislocations.
- The fund is intended to provide liquidity support in the event of a financial crisis.
- It will be in the form of an alternative investment fund (AIF), meant to instil confidence among the participants in the Corporate Bond Market during times of stress
- The fund has Rs 33,000-crore backstop facility for Mutual Funds.
- Of the Rs 33,000 crore, Rs 30,000 crore will come from the government, while the balance Rs 3,000 crore will be contributed by the Asset Management Companies.
- Contributions to the fund can be done by the specified debt-oriented mutual fund schemes and asset management companies of mutual funds.
- This fund is guaranteed by the National Credit Guarantee Trust Company (NCGTC) and the backstop facility will be managed by SBI Mutual Fund.