Classification of Corporate Debt Market Development Fund (CDMDF) as Category I Alternative Investment Fund
Summary
The Securities and Exchange Board of India (SEBI) issues a circular clarifying the classification of the Corporate Debt Market Development Fund (CDMDF). The fund is designated as a Category I Alternative Investment Fund under Regulation 3(4)(a) of the AIF Regulations. This classification aligns with the fund's objective to act as a backstop facility during market stress.
Text
Corporate Debt Market Development Fund (hereinafter referred to as ‘CDMDF’ or ‘the fund’) has been set-up under Chapter III-C of SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations) to act as a Backstop Facility for purchase of investment grade corporate debt securities, to instill confidence amongst the participants in the Corporate Debt Market during times of stress and to generally enhance secondary market liquidity by creating a permanent institutional framework for activation in times of market stress.
In view of the above, it is clarified that CDMDF falls under Category I AIF in terms of Regulation 3(4)(a) of AIF Regulations.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 36 of AIF Regulations, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Classification of Corporate Debt Market Development Fund (CDMDF) as Category I Alternative Investment Fund. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.