Fund to ‘Backstop’ Corporate Debt Market
On 17th February, 2023, India decided to set up a fund worth 330 billion rupees to provide liquidity to its corporate debt market. The purpose is to help stem panic selling and ease redemption pressures.
Contribution
- The government will provide 90% of the money for the fund, and other asset managers would contribute the rest 10%.
- SBI Mutual Fund, a unit of India's largest state-owned lender, State Bank of India, has been tasked with administrating the backstop fund, which was first proposed by the Securities and Exchange Board of India (SEBI) in 2020 after high-profile defaults rocked the domestic debt market.
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Economy Watch
- 1 Centre Launches White Revolution 2.0
- 2 Centenary Celebration of ICAR- NISA
- 3 Review of the NBFC Sector
- 4 Vertical Fiscal Imbalance
- 5 Finance Minister Reviews Performance of RRBs of NE Region
- 6 PM E-DRIVE Scheme: Accelerating India's Shift to Electric Mobility
- 7 Differential Benefits of Electricity in Rural Areas
- 8 Centre Notifies Galathea Bay as a Major Port
- 9 10 Years of Make in India
- 10 Spices Board Unveils SPICED Scheme
