Question
Corporates can raise short term funds through financial
instruments like Commercial Papers (CP) in the money market. What is the minimum time for which a CP can be issued?ÂSolution
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue. Commercial Paper are issued by corporates to raise short term funds.
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