FM Launches AMC Repo Clearing Ltd And The Corporate Debt Market Development Fund

Finance Minister Nirmala Sitharaman launched the Rs. 33,000-crore backstop fund for mutual funds (MFs). The backstop facility termed the Corporate Debt Market Development Fund (CDMDF), was cleared by the capital markets regulator, the Securities and Exchange Board of India (Sebi), in March. The fund corpus will be created by pooling money from debt schemes. The initiative aims to provide liquidity to debt schemes during periods of market stress. According to a Sebi circular issued on Thursday, debt schemes — excluding passive, overnight, and gilt funds — will contribute 25 basis points (bps) of their assets under management towards the creation of the CDMDF.