Commercial Papers
This query is : Resolved
NEHA V SHARDA
(Querist)
23 May 2009
Will you please help me to know what are Commercial Papers(CPs)?
Deepak Agrawal
(Expert)
24 May 2009
In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of one to 270 days. Commercial Paper is a money-market security issued (sold) by large banks and corporations to get money to meet short term debt obligations (for example, payroll), and is only backed by an issuing bank or corporation's promise to pay the face amount on the maturity date specified on the note. Since it is not backed by collateral, only firms with excellent credit ratings from a recognized rating agency will be able to sell their commercial paper at a reasonable price. Commercial paper is usually sold at a discount from face value, and carries shorter repayment dates than bonds. The longer the maturity on a note, the higher the interest rate the issuing institution must pay. Interest rates fluctuate with market conditions, but are typically lower than banks' rates.
24 May 2009
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.
It was introduced in India in 1990 with a view to enabling highly rated corporate borrowers/ to diversify their
sources of short-term borrowings and to provide an additional instrument to investors. Subsequently, primary
dealers and satellite dealers were also permitted to issue CP to enable them to meet their short-term funding
requirements for their operations.
https://www.cab.org.in/Lists/Knowledge%20Bank/Attachments/92/Commercial_Paper.pdf
It was introduced in India in 1990 with a view to enabling highly rated corporate borrowers/ to diversify their
sources of short-term borrowings and to provide an additional instrument to investors. Subsequently, primary
dealers and satellite dealers were also permitted to issue CP to enable them to meet their short-term funding
requirements for their operations.
https://www.cab.org.in/Lists/Knowledge%20Bank/Attachments/92/Commercial_Paper.pdf
NEHA V SHARDA
(Querist)
23 June 2009
thanks..
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Movement of goods by packers and movers - type of sale - Reg.
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
