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    Question

    Who among the following can invest in the Commercial

    Papers issued in India?
    A Individuals Correct Answer Incorrect Answer
    B Foreign Institutional Investors Correct Answer Incorrect Answer
    C Non-Resident Indians Correct Answer Incorrect Answer
    D Both B and C Correct Answer Incorrect Answer
    E All A, B and C Correct Answer Incorrect Answer

    Solution

    Commercial Papers are unsecured money market instruments issued in the form of the promissory notes. This was first issued in India in the year 1990. These instruments can be issued by corporates, primary dealers and all India Financial Institutions such as NHB, NABARD, SIDBI, ECGC, EXIM Bank etc. CP can be issued for a minimum period of 7 days and the maximum period of a year.

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