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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?  
    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   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.  

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