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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Additions to the Framework for Corporate Debt Market Development Fund (CDMDF)

27-Jul-2023 | SEBI/HO/IMD/PoD2/P/CIR/2023/128

SEBI had issued a circular regarding the Framework for Corporate Debt Market Development Fund (CDMDF) dated 26th July 2023 to provide 100% guarantee cover against debt raised/to be raised by CDMDF and for the purpose of investing in corporate debt securities at times of market dislocation with a view to stabilizing the markets. By virtue of this circular, the CDMDF shall comply with the following provisions: 1. The fund shall deal only in the following securities during normal times: a) Low-duration Government Securities b) Treasury bills c) Tri-party Repo on G-sec d) Guaranteed corporate bond repo with a maturity not exceeding 7 days 2. The fees and expenses of the Fund shall be dealt with as per the provisions of Paragraph 3.2 of the given Annexure. 3. CDMDF shall follow the Fair Pricing document as placed in Annexure A. 4. CDMDF shall follow the loss waterfall accounting, as prescribed in Annexure B. 5. CDMDF shall disclose the Net Asset Value (NAV) of the fund by 9:30 PM on all business days on the website of its Investment Manager and AMFI and when exposure to corporate debt has been made, such NAV shall be disclosed by 11 PM on all business days.

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