Commercial Papers
This query is : Resolved
23 May 2009
Will you please help me to know what are Commercial Papers(CPs)?
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.
http://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.
http://www.cab.org.in/Lists/Knowledge%20Bank/Attachments/92/Commercial_Paper.pdf
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
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- ITR 6 Schedule CFL and UD Issues
- Income Type for interest from government bonds
- FREELANCING ACCOUNTANT
- NR GST NUMBER
- Not a CA , can we prepare balance sheet
- For REQUIRE INDIVIDUAL GST
- GST Form ADT-02
- TCS ON SOFTWARE SALES
- Query Regarding on TDS section 194H and 194J
- TDS on purchase of value vouchers for employees ?
- PAYMENT TO OPEN AI AND ENVATO ELEMENT
- From 15CA for remittance by domestic travel agent by to Foreign Destination Management Company.
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
