{"id":6857,"date":"2023-03-31T06:22:05","date_gmt":"2023-03-31T00:52:05","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=6857"},"modified":"2025-03-28T15:25:28","modified_gmt":"2025-03-28T09:55:28","slug":"corporate-debt-market-development-fund","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/corporate-debt-market-development-fund\/","title":{"rendered":"Corporate Debt Market Development Fund"},"content":{"rendered":"<h2><strong>About<\/strong> <strong>Corporate Debt Market Development Fund:<\/strong><\/h2>\n<ul>\n<li>The \u2018Corporate Debt Market Development Fund (CDMDF) is <strong>a backstop facility<\/strong> for specified debt funds during market dislocations.<\/li>\n<li>The fund is intended to provide <strong>liquidity support<\/strong> in the event of a financial crisis.<\/li>\n<li>It aims to instil confidence amongst the participants in the corporate bond market and to generally enhance secondary market liquidity.<\/li>\n<li>The proposed CDMDF will have an <strong>initial corpus of Rs 3,000 crore<\/strong> contributed by mutual funds.<\/li>\n<li>The government has approved a 10-time leverage of the fund (Additional corpus), thus CDMDF may raise funds up to Rs 30,000 crore.<\/li>\n<li>Contributions to the fund can be done by the <strong>specified debt-oriented mutual fund<\/strong> schemes and asset management companies of mutual funds.<\/li>\n<li>This fund is guaranteed by the <strong>National Credit Guarantee Trust Company (NCGTC)<\/strong> and the backstop facility will be managed by <strong>SBI Mutual Fund.<\/strong><\/li>\n<li>Specified mutual fund schemes will have access to the fund for selling securities during market dislocation.<\/li>\n<li>This access is proportional to the contribution made to the fund at a mutual fund level.<\/li>\n<\/ul>\n<h3>What is a Backstop facility?<\/h3>\n<ul>\n<li>A backstop is an act <strong>of providing last-resort support or security<\/strong> in a securities offering for the unsubscribed portion of shares.<\/li>\n<li>When a company is trying to raise capital through an issuance, it may get a backstop from an <strong>underwriter or a major shareholder<\/strong>, such as an <strong>investment bank<\/strong>, to buy any of its unsubscribed shares.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1) What is National Credit Guarantee Trustee Company Ltd (NCGTC)?<\/h3>\n<p>National Credit Guarantee Trustee Company Ltd (NCGTC) is a private limited company incorporated under the Companies Act 1956 on March 28, 2014, established by the Department of Financial Services, Ministry of Finance, as a wholly owned company of the Government of India, to act as a common trustee company for multiple credit guarantee funds.<\/p>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/www.financialexpress.com\/market\/sebi-to-set-up-corp-debt-mkt-development-fund-with-rs-3000-crore-initial-corpus-from-mfs\/3026279\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Sebi to set up corp debt mkt development fund with Rs 3,000 crore initial corpus from MFs<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Corporate Debt Market Development Fund (CDMDF) is a backstop facility for specified debt funds during market dislocations.<\/p>\n","protected":false},"author":5,"featured_media":6858,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-6857","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/6857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=6857"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/6857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/6858"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=6857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=6857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=6857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}