Since a friend asked, and I typed this, if it's of use to anyone
1) FT mutual funds was one of the largest player in what SEBI calls credit risk funds. Almost 25% of the overall mutual fund investments in this category

2) these funds invest in mostly A rated debentures CPs (for ref, PSUs are AAA rated, large solid corporates are AAA or AA rated). So, A or BBB rated companies are investment grade but not best of best
3) so they pay a better yield to investors for the higher credit risk

4) in developed markets, this is fairly liquid market i.e. there are enough buyers and sellers of this type of securities
5) in India, insurance cos, pension funds don't like these risks & usually stick to higher rated papers. Hence, the market is shallow

So, although the securities held by FT are listed in name, they are not really traded or tradeable

6) recently, the market has been hit by ilfs, yes Bank, essel, covid, Vodafone. So, risk appetites of debt investors was very low. Much of securities in FT funds are bonds of nbfcs, sector especially hit by the above and covid.

7) so, redemption pressure increased on FT funds. Sebi allows funds to borrow upto 20% of AUM to meet redemptions, a limit FT funds were close to
8) FT had two choices, do a fire sale of their investments or do what they did, freeze redemptions

9) so, the jury is still out. FT claims this would allow them to deliver higher value to the investors although hurt them in the shortbterm due to freeze on redemption