CDMDF: Corporate Debt Market Development Fund

Tue, 19 May 2026 00:00:00 +0000

The Corporate Debt Market Development Fund (CDMDF) is a SEBI-conceptualised industry-funded backstop facility designed to provide liquidity to corporate debt mutual fund schemes during stress events. The CDMDF was structured following lessons from the April 2020 Franklin Templeton India debt-fund wind-up event, which highlighted the corporate-debt segment’s vulnerability to illiquidity in stressed market conditions.

For Indian retail investors, the CDMDF provides a regulatory cushion against the kind of redemption-driven liquidity crisis that triggered the 2020 wind-ups of six Franklin Templeton debt schemes. The fund’s existence aims to:

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CDMDF: Corporate Debt Market Development Fund