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

Combined CPI
Combined CPI inflation witnessed controlled pressures from the food basket coming in at 3.69% for Aug-18 compared to 4.17% for the previous month. Consequently, core inflation decelerated to 5.87% compared to 6.28% previously
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Industrial production July-18
Industrial production for the month of July-18 stood at 6.6% slightly lower than revised estimate of June-18 at 6.8%(previously 7.0%). Nonetheless, sequential momentum noted expansion in Electricity (1.4%) while Manufacturing and Mining sectors contracted by 0.5% and 8.8% respectively
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Wholesale Price
Wholesale Price Index came in at 4.53% as against 5.09% in the July mainly due to a moderate rise in prices of primary articles as well as a favourable statistical base. At the same time, June WPI print was revised downwards to 5.68% from 5.77% previously.
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Surpassing market expectations
Surpassing market expectations, India’s Real GDP for Q1 FY19 stood at 8.2%, better than 7.7% growth seen in the previous quarter. Correspondingly, Nominal GDP surged to 13.8% in Q1 FY19 on back of strong growth in private consumption and investment. India’s Real GVA growth for Q1FY19 stood at 8.0% compared to 7.6% in the previous quarter.
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