Commercial
Paper (CP):- Commercial
Paper (CP) is an unsecured money market instrument issued in the form of a
promissory note.
Corporate, primary dealers (PDs) and
the all-India financial institutions (FIs) that have been permitted to raise
short-term resources under the umbrella limit fixed by the Reserve Bank of
India are eligible to issue CP.
Period: CP can be issued for maturities
between a minimum of 7 days and a maximum up to one year from the date of
issue.
Certificate
of Deposit (CD):- Certificate
of Deposit (CD) is a negotiable money market instrument and issued in
dematerialized form or as a Usance Promissory Note, for funds deposited at a
bank or other eligible financial institution for a specified time period.
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