STCI Primary Dealer Ltd.

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Inter- Corporate Deposits


 
An Inter-Corporate Deposit (ICD) is an unsecured borrowing by corporates and FIs from other corporate entities registered under the Companies Act 1956. The corporate having surplus funds would lend to another corporate in need of funds. This lending would be an uncollateralized basis and hence a higher rate of interest is demanded by the lender. The short term credit rating of the borrowing corprorate would determine the rate at which it would be able to borrow funds. Further the credit spreads demanded even for the top rated corporates would be higher than similar rated banks and the rates on ICDs would higher than those in the Certificate of Deposit (CD) market. The tenor of ICD may range from 1 day to 1 year, but the most common tenor of borrowing is for 90 days.
 
Primary Dealers are permitted to borrow in the ICD market. The borrowing under ICD is restricted to 150% of the Net Owned Funds and the minimum tenor of borrowing is for 7 days. Primary Dealers cannot lend in the ICD market.
 
STCI Primary Dealer Ltd. borrows funds in the ICD market. The company has a credit rating of ‘A1+’ from ICRA and CRISIL for its Short Term Debt Programme. Corporates interested in placing deposits with us may contact on 022 6620 2213/232.
 
 
 

Latest News

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India’s Q1 FY18 GDP rose to 5.7% compared to 6.1% in the previous quarter and 7.9% in the corresponding period a year ago. GVA growth stood at 5.6% unchanged from Q4 FY17.
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India’s eight-core sector output grew by 2.4% in July compared to 0.8% a month ago led by growth in sectors including coal, steel and electricity.
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CPI for the month of August stood 100 bps higher at 3.36% vis-à-vis 2.36% in the previous month as a result of a surge in vegetable prices, impact of House Rent Allowances as well as introduction of GST.
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Industrial growth (IIP) saw a modest expansion of 1.2% in July after contracting by 0.1% in June mainly on account of an expansion in electricity and mining sectors.
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Reaching a four month high, wholesale inflation quickened to 3.24% in Aug-2017 from 1.88% observed in the previous month. Though a surge in food prices continued to be a major influence, a sequential increase in prices of fuel and manufactured products contributed to this uptick.
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