Customer Service Chat
Get quote & make Payment
Features and purpose CDs , Financial Management
The distinct features of CDs are:
CD is a document of title to a time deposit and is distinct from conventional time deposit with respect to negotiability and marketability.
CDs are considered as virtually riskless instruments as the default risk is almost nil, and investors are sure of receiving the invested amount with interest.
The liquidity and marketability features are considered as the hallmarks of CDs.
CDs are issued at a discount to face value.
CDs are maturity-dated obligations of banks forming a part of time liabilities, and are subjected to usual reserve requirements.
CDs may be either registered or in a bearer form. The latter form, however, is considered better for secondary market operations.
CDs attract stamp duty and there is no grace period, as in the case of bill financing.
CDs are freely transferable by endorsement and delivery.
The CDs issued are within the limit as specified by Reserve Bank of India.
CDs are also issued in demat forms only. Only the request of Investors they can be issued in physical form.
CDs held in the demat form can be transferred as per the procedure applicable to other demat securities.
The trade settlement will take place on T + 1 day basis; however, the settlement period will be subject to the ceiling of T + 5 days or such period of settlement as specified by the exchanges, whenever the trade is done on a recognized stock exchange.
Posted Date: 9/11/2012 4:17:37 AM | Location : United States
Ask an Expert
Features and purpose CDs , Assignment Help, Ask Question on Features and purpose CDs , Get Answer, Expert's Help, Features and purpose CDs Discussions
Write discussion on Features and purpose CDs
Your posts are moderated
Write your message here..
Why is the coefficient of variation a better risk measure, Why is the coeff...
Why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk of capital budgeting projects? The coefficient of variatio
What is meaning of perpetuity, What is meaning of Perpetuity If annuity...
What is meaning of Perpetuity If annuity is expected to go on forever then it is known as a perpetuity and then the above formula reduces to: Present value: A/i Perpetuit
Pay back period (pbp) , Pay Back Period (PBP) : This is the most popula...
Pay Back Period (PBP) : This is the most popular method employed by industrial practitioners for ranking investment projects. This is described as the "period required for a pr
Explain zero coupon bonds, Explain Zero coupon bonds The bonds that are...
Explain Zero coupon bonds The bonds that are sold at a discount from face value and do not pay any coupon interest over their life are known as Zero coupon bonds. At maturity t
Cost of capital.., your firm is considering its household products division...
your firm is considering its household products division. you identify John Lewis as a firm with comparable investments. suppose J.L. equity has a market capitalization of 150 bill
Why auditors need to attain audit evidence, Why auditors need to attain aud...
Why auditors need to attain audit evidence When significant fluctuations/unexpected relationshipsare identified which are inconsistent with other relevant information or t
Federal reserve board, Federal Reserve Board The Federal Reserve Board ...
Federal Reserve Board The Federal Reserve Board controls the nation's monetary policy, regulates banks, and searches to keep the financial stability of the United States. Its t
Criticize the flexible exchange rate regime, Criticize the flexible exchang...
Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. If exchange rates are fluctuating very frequently, that may
Factors affecting choice of a minimum cash balance amount, Explain the fact...
Explain the factors affecting the choice of a minimum cash balance amount. The smallest cash balance amount is determined by how easy it is to raise funds when needed, how expe
Differance between forward start option and a package, 1 Explain the differ...
1 Explain the difference between a forward start option and a package. Outperformance certificates are offered to investors by many European banks as a way of investing in a com
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.