Corporate debt backstop fund requires mutual fund debt schemes and AMCs to contribute and enables purchases during market dislocation. Creation of CDMDF as a close-ended backstop facility to purchase listed investment-grade corporate debt (including money market instruments) with residual maturity up to five years from specified debt-oriented mutual fund schemes during SEBI-declared market dislocation. Specified schemes must invest a fixed fraction of their AUM in CDMDF units with incremental top-ups as AUM grows; AMCs make a one-time contribution tied to their schemes' AUM. Sellers receive predominantly cash and a portion in units that bear first-loss risk. Contributions are locked-in, access is proportional to holdings, and CDMDF investments are excluded from certain risk and maturity calculations.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Corporate debt backstop fund requires mutual fund debt schemes and AMCs to contribute and enables purchases during market dislocation.
Creation of CDMDF as a close-ended backstop facility to purchase listed investment-grade corporate debt (including money market instruments) with residual maturity up to five years from specified debt-oriented mutual fund schemes during SEBI-declared market dislocation. Specified schemes must invest a fixed fraction of their AUM in CDMDF units with incremental top-ups as AUM grows; AMCs make a one-time contribution tied to their schemes' AUM. Sellers receive predominantly cash and a portion in units that bear first-loss risk. Contributions are locked-in, access is proportional to holdings, and CDMDF investments are excluded from certain risk and maturity calculations.
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