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

India retail inflation
India’s retail inflation for Apr-18 stood 30 bps higher at 4.58%, as compared to 4.28% in Mar-18 as inflationary pressures emanated from the food and services components. Additionally, core inflation stood significantly higher at 5.92%, upward from 5.37% in Mar-18.
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Inflation based
Inflation based on the Wholesale Price Index came in at a four month high of 3.18% as compared to 2.47% in the previous month, primarily led by a sharp rise in the prices of food and fuel components.
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The country barometer
The country’s barometer of economic productivity, IIP moderated to 4.36% in Mar-18 after posting robust activity of 7.00% in the previous reading mainly due to a large unfavorable statistical base. In fact, sequential momentum saw a significant uptick across Mining (19.3% mom), Manufacturing (6.7% mom) and Electricity (15.1% mom).
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