Economics · Economy
According to the regulatory guidelines in India, which of the following statements is correct regarding Corporate Bonds and Commercial Papers?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All corporate bonds in India must be issued at a fixed coupon rate; floating rate bonds are strictly restricted to the central government.
- 2The Credit Default Swap (CDS) market in India is completely prohibited for all scheduled commercial banks.
- 3Commercial Paper (CP) is a short-term unsecured money market instrument issued as a promissory note with maturity between 7 days and 1 year.✓
- 4Corporate bonds are always issued as unsecured instruments and do not require a debenture trustee for institutional placements.
Correct answer
Commercial Paper (CP) is a short-term unsecured money market instrument issued as a promissory note with maturity between 7 days and 1 year.
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