Consider the following statements regarding the Corporate Debt Market Development Fund (CDMDF) : 1. It will be established as an Alternative Investment Fund. 2. Contribution to the fund shall be mandatory for specified debt-oriented Mutual Fund Schemes and Asset Management Companies. 3. Initially, it will be established for 5 years and can be extended as per SEBI's mandate. How many of the statements given above are correct?
Analyzing CDMDF Statements
This question requires evaluating the accuracy of three statements concerning the Corporate Debt Market Development Fund (CDMDF).
Statement 1: Structure as Alternative Investment Fund
This statement is considered inaccurate. While the CDMDF operates under SEBI's regulations, it is not explicitly established as a standard Alternative Investment Fund (AIF) in the typical sense. Its structure is specific to its purpose of supporting the corporate debt market.
Statement 2: Mandatory Contributions
This statement is correct. A key feature of the CDMDF is that contributions are mandatory. These contributions are required from specified debt-oriented Mutual Fund (MF) schemes and their Asset Management Companies (AMCs) to ensure the fund's capital base.
Statement 3: Establishment Period
This statement is considered inaccurate. The initial duration for the establishment of the CDMDF and the criteria for its potential extension are determined by SEBI's framework, but the specific mention of '5 years' as the initial period is not accurate according to the fund's design.
Conclusion on Correct Statements
After analyzing the statements:
- Statement 1 is incorrect.
- Statement 2 is correct.
- Statement 3 is incorrect.
Thus, only one statement (Statement 2) is correct.
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