What do you mean by commercial paper?
Commercial paper:
· Commercial papers are negotiable short term unsecured promissory notes with fixed maturities issued by well rated organizations.
· These are generally sold on discount basis.
· Organizations can issue commercial papers either directly or through banks or merchant bankers called as dealers.
· Commercial papers are freely negotiable by endorsement and delivery
· The minimum maturity period is 7 days
· The minimum credit rating should be P+ awarded by CRISIL (Credit Rating Information Services of India Limited)
