
The Budget had mixed signals for debt fund investors. On the positive side, measures were announced to boost the corporate bond markets. In her Budget speech, the finance minister proposed setting up a permanent institutional framework to buy investment-grade debt securities from companies, both in stress and normal times. This proposal is aimed at enhancing the depth and liquidity in the corporate bond market. Corporate bonds make up for a large portion in debt fund portfolios but their liquidity in the secondary markets has always been a pressing concern, more so post the winding up of six Franklin Templeton debt schemes. Therefore, the effort to provide an impetus to the corporate bond markets is not just a step in the right direction but one that is badly needed. In another Budget announcement which caused some trouble for the debt funds investors
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