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 Consumer
India’s Consumer Price-based inflation rose to 5-month high of 5.00% in June compared to 4.87% a month prior. Core CPI accelerated to 6.45% in June from 6.18% a month ago.
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Wholesale inflation rose
Wholesale inflation rose to a 4 year high of 5.77% in June compared to 4.43% a month prior led by inflationary pressures from food and fuel items. Consequently, core WPI inched up to 4.76%, as compared to 4.40% in May,18.
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Growth in India
Growth in India’s Index of Industrial Production (IIP) slowed to 3.2% in May as against 4.8% in the previous month. Nonetheless, broad based sequential uptick was witnessed with Mining at 4.6%, Manufacturing at 4.5% and Electricity at 7.2%
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In its Third
In its Third Bi-monthly Monetary Policy Meeting, MPC-panel raised the policy repo rate by 25 basis points to 6.5% while maintaining neutral stance. Consequently, reserve repo rate stands at 6.25% while marginal standing facility (MSF) rate stands at 6.75%.
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Inflation inclusive
Inflation inclusive of HRA impact is projected at 4.6% in Q2, 4.8% in H2 FY19 (4.7% previous) and 5% in Q1 FY20. Growth projection for FY19 was maintained at 7.4% ranging7.5%-7.6% in H1 FY19 and 7.3%-7.4% in H2 FY19.
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