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


In its first Bi-Monthly Monetary Policy for FY18, the MPC-panel maintained its pause on policy rates, whilst reiterating its neutral stance.
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The panel forecasts mild upside risks to its inflation projections, while GVA growth is expected to remain healthy at 7.4% for FY18.
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India’s consumer price-based inflation dropped to new record low of 2.99% in April on the back of decline in prices of food articles including pulses and vegetables.
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India’s WPI based on the revised 2011-12 series edged lower to 3.85% in April as manufactured goods and food articles indicated cooling of prices.
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Further fine-tuning the existing liquidity framework, RBI narrowed the LAF corridor to +/- 50 bps vis a vis the earlier +/- 100 bps.
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Consequently, the policy rates are as follows: 1. Repo rate: 6.25%, 2. Reverse repo: 6% , 3. MSF at 6.50%.
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India’s Industrial Production in March under the revised base year of 2011-12 slipped 2.7% as against 5.5% in Feb owing to weak performance in the manufacturing sector.
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