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Yes. CP will be issued either within the type of a promissory note (Schedule I given in the Master Circular-Tips for Situation of Commercial Paper dated July 1, 2011 and up to date from time -to-time) or in a dematerialised type through any of the depositories authorised by and registered with SEBI. Banks, FIs and PDs can maintain CP solely in dematerialised type.
Certificates of deposit (CDs), business paper (CP) and Treasury payments (T-payments) are all securities issued to borrow money brief-term (typically now not than a 12 months). In most markets, buyers are normally professional – corporations, fund managers, banks, and many others. – although in some markets these devices are sometimes issued in denominations small enough to permit for people to put money into them. All three devices are usually ‘negotiable’, which means that they are often bought and offered, subsequent to their authentic difficulty, in the ‘secondary market’.
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Sure. CPs are actively traded in the OTC market. Such transactions, however, are to be reported on the FIMMDA reporting platform within quarter-hour of the trade for dissemination of commerce data to market participation thereby guaranteeing market transparency.
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