Question

which of the following is true with respect to commercial papers?

a) These are issued in multiple of ₹ 1 lakh

b) The minimum amount to be invested by single investor is ₹ 5 lakh

c) The minimum maturity period is 30 days

d) The issuer cannot buy back these instruments

e) These can be raised upto the extent of 80% of working capital limit​

Answer 1

Answer:

d) The issuer cannot buy back these instruments

e) These

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Answer 2

Generally, the tenor of dated securities ranges from 5 years to forty years. The Public Debt Office (PDO) of the banking concern of Asian country acts because of the registry/depository.

Explanation:

• The CMBs have the generic character of T-bills but square measure issued for maturities less than ninety-one days. c. Dated G-Secs. 1.5 Dated G-Secs square measure securities that carry a mounted or floating coupon (interest rate) that is paid on the face worth, on a half-yearly basis.

• Generally, the tenor of dated securities ranges from 5 years to forty years. The Public Debt Office (PDO) of the banking concern of Asian country acts because of the registry/depository.

• NBFCs are tiny organizations and have modest mounted and force prices.

• Therefore, they can pass away the advantages to the capitalist within the variety of the next rate of interest.