MUMBAI – India’s markets regulator has accepted a fund to backstop the company debt marketplace for shopping for ill-liquid and funding grade debt paper, it stated on Wednesday. In February, Reuters had reported that India is organising a fund value 330 billion rupees ($4 billion) to offer liquidity to its company debt market throughout bouts of stress, to assist stem panic promoting and ease redemption pressures.

Finance Minister Nirmala Sitharaman introduced final 12 months that the federal government had taken up the Securities and Exchange Board of India’s proposal for the fund, with out giving particulars.

(Reporting by Jayshree P. Upadhyay; Editing by Nivedita Bhattacharjee)