A $4 billion fund will be set up by India to backstop the corporate debt market

A $4 billion fund will be set up by India to backstop the corporate debt market.

According to an SBI Mutual Fund official who spoke to Reuters, India is establishing a fund worth Rs 33,000 crore ($4 billion) to offer liquidity to its corporate debt market at times of stress.

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The backstop fund might enter the market in times of crisis and purchase relatively scarce investment grade bonds.

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The source stated that although the fund is minor in comparison to the $471 billion Indian corporate bond market, it may eventually grow in size.

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