STCI Primary Dealer Ltd.

Products

Skip Navigation Links.

Certificates of Deposit


 
Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution for a specified time period. Scheduled Commercial Banks excluding Regional Rural Banks (RRBs) and local Area Banks (LABs); and select all-India Financial Institutions have been permitted by RBI to issue CDs. To the issuer, it offers a better opportunity to mobilize bulk resources to fund short term liquidity mismatches.
 
CDs are money market instruments and are issued at a discount to the face value and redeemed at par value. Banks / FIs are also allowed to issue CDs on floating rate basis provided the methodology of compiling the floating rate is objective, transparent and market-based. The tenor of issue can range from 7 days to 1 year. However most CDs are issued by banks for 3, 6 and 12 months.
 
CDs can be issued to individuals, corporations, companies, trusts, funds, associations, etc. Non Resident Indians may also subscribe to CDs. Such CDs cannot be endorsed to another NRI in the secondary market. However, they are mainly subscribed to by banks, mutual funds, provident and pension funds and insurance companies.
 
The minimum amount of a CD should be Rs. 1 Lac i.e., the minimum deposit that can be accepted from a single subscriber should not be less than Rs 1 Lac. and in multiples of Rs 1 Lac thereafter.
 
CD, being a short term instrument, is highly influenced by the prevailing liquidity conditions in the market. Hence, the market generally witnesses surge in volumes during quarter end and financial year end. There exists an active secondary market for CDs which witnesses an average volume of Rs 200-300 Cr per day with demand and supply determined by the liquidity conditions in the market.
 
Clients interested buying/selling CDs may contact our Sales Personnel on 022-66202224/25/28. We endeavor to provide the best possible returns to our clients, keeping in line with their overall investment objectives.
 
 
 

Latest News

Real gross domestic product for Q4FY21
Real gross domestic product for Q4FY21 noted a year on year growth 1.6%, showing signs of improvement over the previous quarter’s growth of 0.5%. Gross Value Added (GVA) grew by a strong 3.7% as compared to a growth of 1% in the previous quarter.
--------------------------------------------------
Gross Value Added (GVA)
Gross Value Added (GVA) grew by a strong 3.7% as compared to a growth of 1% in the previous quarter.
--------------------------------------------------
In the second bi-monthly monetary policy for FY22
In the second bi-monthly monetary policy for FY22, the RBI Monetary Policy Committee unanimously decided to maintain status quo on policy rates and the policy stance. The key policy rates stand unchanged: Repo rate at 4.00%, Reverse Repo rate at 3.35%, Marginal Standing Facility and Bank rate at 4.25%.
--------------------------------------------------
The CPI-June
The Consumer Price Index (Combined) inflation for June 2021 printed lower at 6.26% as compared to the reading of 6.30% in the previous month.
--------------------------------------------------
Headline-june-2021
Headline WPI inflation for June 2021 printed at 12.1%, marginally lower than 12.9% recorded in May 2021, due to softening in prices of primary articles and fuel along with a strong favourable statistical base.
--------------------------------------------------
IIP growth May 2021
IIP growth for May 2021 printed at 29.3% as against the revised reading of 134.6% in April 2021, on a year on year basis.
--------------------------------------------------