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 Q3FY21 noted a year on year growth of 0.4%, showing signs of improvement over the previous quarter’s contraction of -7.3%.
--------------------------------------------------
In April 2021
In April 2021 Monetary Policy meeting, the MPC unanimously decided to maintain status quo on policy rates. 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%.
--------------------------------------------------
Consumer Price
The Consumer Price Index (Combined) inflation for March 2021 printed at 5.52% as compared to a reading of 5.03% in the previous month. Average CPI inflation for FY21 stood at 6.18% as compared to 4.76% in FY20.
--------------------------------------------------
WPI Infation
Headline WPI inflation for March 2021 printed at 7.39%, substantially higher than 4.17% recorded in February 2021, largely due to inflationary pressures emanating from manufactured products and fuel index.
--------------------------------------------------
IIP growth for February 2021
IIP growth for February 2021 printed lower at -3.6% as against the revised estimate of -0.8% recorded in January 2021, on a year on year basis.
--------------------------------------------------