Question
Which of the following instruments is traded in the
'Corporate Debt Market'?Solution
- The Corporate Debt Market is where companies raise capital by issuing debt securities .
- Commercial Paper (CP) is a short-term, unsecured promissory note issued by corporations to meet their immediate funding needs (maturity < 1 year). It is a classic money market instrument that is part of the corporate debt universe.
- Equity Shares represent ownership, not debt.
- Treasury Bills and Sovereign Gold Bonds are debt instruments, but they are issued by the Government of India (sovereign), not corporations. They trade in the government securities (G-Sec) market.
According to the Insurance Act, how should the assets in India of any insurer be kept, except in certain circumstances?
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