Business Standard - India is setting up a fund worth Rs 33,000 crore ($4 billion) to provide liquidity to its corporate debt market during bouts of stress, to help stem panic selling and ease redemption pressures, an SBI Mutual Fund executive told Reuters. The government will provide 90% of the money for the fund, and other asset managers would contribute the rest, deputy managing director D.P. Singh said. Read more
What is a corporate debt market? The Debt Market is the market where fixed income securities of various types and features are issued and traded.
Debt Markets are therefore, market for fixed income securities issued by Central and State Governments, Municipal Corporations, Government bodies and commercial entities like Financial Institutions, Banks, Public Sector Units, Public Ltd. Companies and also structured finance instruments.
Presently, India is setting up ₹33,000 crore ($4 billion) fund to provide liquidity to its corporate debt markets in times of stress, an SBI Mutual Fund executive told Reuters, to help stem panic selling and ease redemption pressure.
What is panic selling? Panic selling is the studen widespread selling of one or many stocks, based on fear rather than reasoned analysis.
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