Banking · Money Market Instruments - Commercial Paper
According to the Reserve Bank of India directions governing money market instruments, which condition must a corporate entity fulfill to be eligible to issue Commercial Paper (CP)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The instrument must be issued for a minimum maturity period of 1 year.
- 2The board of directors must consist predominantly of ex-regulatory officers.
- 3The corporate must have been sanctioned a working capital limit by a bank/FI and its account must be classified as a Standard Asset.✓
- 4The company must have a minimum net worth of 500 crore rupees.
Correct answer
The corporate must have been sanctioned a working capital limit by a bank/FI and its account must be classified as a Standard Asset.
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