The Securities and Exchange Board of India (SEBI), on December 13, 2024, issued a Classification of Corporate Debt Market Development Fund (CDMDF) as Category I Alternative Investment Fund.
The Corporate Debt Market Development Fund (CDMDF) has been established under Chapter III-C of the SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations) to serve as a Backstop Facility for purchasing investment-grade corporate debt securities. This initiative aims to bolster confidence among Corporate Debt Market participants during periods of stress and enhance secondary market liquidity through a permanent institutional framework for activation in times of market instability.
In response to representations seeking clarity, SEBI has clarified that while CDMDF operates under a distinct framework outlined in Chapter III-C, its broader purpose aligns with the economic objective of corporate bond market development. Consequently, CDMDF is classified under Category I AIF, as per Regulation 3(4)(a) of the AIF Regulations.
[Notification No.- SEBI/HO/IMD/PoD2/P/CIR/2024/174]
