RBI exercise its powers conferred under sections 45K, 45L and 45W of the Reserve Bank of India Act, 1934 to issue guidelines related to Regulation of Money Market Instruments. The Reserve Bank of India has issued guidelines to the eligible market participants in regard to call/notice money market, Commercial Paper (CP), Certificates of Deposit (CD) and Non-Convertible Debentures (NCDs) of original or initial maturity up to one year.
Scheduled commercial banks (excluding RRBs), co-operative banks (other than Land Development Banks) and Primary Dealers (PDs), are permitted to participate in call/notice money market both as borrowers and lenders.
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Companies, PDs and FIs are permitted to raise short term resources through Commercial Paper.
A company would be eligible to issue CP provided:
Certificates of Deposit can be issued by:
A corporate shall be eligible to issue Non-Convertible Debentures if it fulfills the following criteria, namely,
Master Direction on Money Market Instruments
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