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      Question

      What is the primary objective of the Corporate Debt

      Market Development Fund (CDMDF), as per SEBI Annual Report 2023-24? ย 
      A Increasing retail participation in debt markets Correct Answer Incorrect Answer
      B Providing a backstop facility for mutual funds during market stress Correct Answer Incorrect Answer
      C Improving bond ratings Correct Answer Incorrect Answer
      D Reducing corporate debt default rates Correct Answer Incorrect Answer
      E Simplifying debt issuance processes Correct Answer Incorrect Answer

      Solution

      Providing a backstop facility for mutual funds during market stress ย  The CDMDF was established as a standby institution to buy investment-grade debt securities from mutual funds during periods of market stress. This initiative aims to boost investor confidence, enhance secondary market liquidity, and ensure stability in the corporate bond market. ย 

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