Question

A commercial paper requires a minimum investment of --- and in its multiples, thereafter.

• A. 10 lakhs
• B. 5 lakhs
• C. 2 lakhs
• D. 7.5 lakhs

Answer 1

Answer:

B. 5 lakhs

COMMERCIAL PAPER:

• Commercial Paper is an unsecured Short term debt instrument, which are issued by Corporates and All Indian Financial institution.

• Tenure of a commercial paper shall be between - 7 Days to 1 year 

• Commercial Paper was introduced in India by RBI - Jan 1990 

• Commercial paper is issued for Working Capital requirements 

• Commercial paper is an - unsecured promissory note 

• Commercial paper was first used in CPs are available for a minimum amount of Rs 500000 or multiples of it.

• It is a Negotiable Instrument