India is setting up a Rs 33,000 crore ($4 billion) fund to provide liquidity to its corporate debt markets in times of stress, an SBI mutual fund executive told Reuters, to help stem panic selling and ease Redemption pressure.

The government will finance 90% of the fund, and asset managers will contribute the rest, said D.P. Singh, vice president.

SBI Mutual Funds, a unit of State Bank of India, India’s largest state lender, manages the backing fund first proposed by the Securities and Exchange Board of India (SEBI) in 2020 after a high-profile default that rocked the domestic bond market.

In times of stress, backing funds can go into the market to buy relatively illiquid investment-grade bonds.

Franklin Templeton India’s move to halt redemptions by six debt funds in April 2020 underscores the need for buyers and sellers of last resort in corporate bonds as investors withdraw funds and fund houses cannot sell their bond investments in the market.

Finance Minister Nirmala Sitharaman announced last year that the government had accepted SEBI’s proposal for the fund but gave no details.

The fund will be operational within three months, a person familiar with the plans told Reuters.

The people said the fund is small relative to India’s Rs 39 trillion ($471 billion) corporate bond market, but its size could increase later.