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

Indias Q2FY18
India’s Q2FY18 GDP rose to 6.3% compared to 5.7% a quarter ago and 7.5% in the year ago period. GVA growth stood at 6.1% compared to 5.6% in Q1FY18
--------------------------------------------------
Fiscal deficit
Fiscal deficit for the Apr-Oct period stood at Rs 5.25 tn which is 96.1% of the budgeted fiscal deficit compared to 79.3% for the corresponding period in the previous year
--------------------------------------------------
In its Fifth
In its Fifth Bi-monthly Monetary Policy, RBI maintained ‘status quo’, leaving key policy rates unchanged.
--------------------------------------------------
Inflation projection
Inflation projection for H2 FY18 was revised marginally upwards to 4.3%-4.7% from 4.2%-4.6% previously.
--------------------------------------------------
Standing 130
Standing 130 bps higher, CPI for the month of November came in at 4.88% as compared to 3.58% in October mainly led by an unabated surge in vegetable and fuel prices. Core CPI also saw an uptick standing at 4.86% in Nov vis-à-vis 4.55% in Oct.
--------------------------------------------------
November WPI
November WPI stood at 3.93% up from 3.59% observed a month ago mainly led by inflationary pressures in primary articles.
--------------------------------------------------
Industrial
Industrial production as measured by IIP saw some moderation standing at 2.2% in Oct as compared to 4.2% in Sep. Strong growth impulses emanating from the mining sector aided, despite the sequential contraction observed in both manufacturing and electricity sectors.
--------------------------------------------------