Protecting investors

In its board meeting on Wednesday, the Securities and Exchange Board of India (Sebi) decided to launch a facility like “Applications Supported by Blocked Amount” (ASBA) for secondary-market transactions, along with instructions for upstreaming client funds directly to clearing corporations by stockbrokers. The regulator has also amended the Sebi (Alternative Investment Funds) Regulations, 2012, in order to set up a Rs 33,000-crore Corporate Debt Market Development Fund as an alternative investment fund. This will act as a backstop. It could buy investment-grade corporate-debt securities during times of stress to help stabilise the bond market and enhance secondary-market liquidity. The backstop will increase confidence in the market. Sebi will also establish a regulatory framework for environmental, social, and governance (ESG) rating