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 Fifth Bi-Monthly
In its Fifth Bi-Monthly Monetary Policy for FY19, the MPC-panel maintained ‘status quo’. Consequently, key policy rates remained unchanged - Repo rate at 6.50%, Reverse repo at 6.25% and MSF at 6.75%.
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Inflation projections for
Inflation projections for 2018-19 were revised downwards as food inflation has remained benign. It is projected at 2.7%-3.2%% in H2 FY19 (3.8%-4.5% previously) and 3.8%-4.2% in H1 FY20.
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Growth for FY19
Growth for FY19 is projected at 7.4% with 7.2%-7.3% in H2 FY19 (7.3%-7.4% previously). Growth in H1 FY20 is projected to stand at 7.5%.
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Belying market expectations, CPI for Nov-18
Belying market expectations, CPI for Nov-18 stood at a 17 month low of 2.33% vis-à-vis 3.38% (3.31% previously) observed in the previous month aided by a strong favorable base and continued moderation in food inflation. However, core CPI edged higher to 6.18% from 5.81% in the previous month.
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Industrial production witnessed a sharp rise
Industrial production witnessed a sharp rise of 8.1%in Oct-18 vis-à-vis 4.5% in Sep-18. On sequential basis, upward momentum was observed across sectors with Mining at 14.2%, Electricity at 1.9% and Manufacturing at 1.6%.
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Wholesale inflation for Nov-18
Wholesale inflation for Nov-18 came in at 4.64%, lower than 5.28% registered in Oct-18. Despite inflationary pressures from food items, lower fuel prices and a favourable base effect led to this downtick in inflation. Consequently, core WPI inched down to 4.88%, as compared to 5.15% in Oct-18
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