What is the minimum and maximum period of maturity prescribed for CP?
CP can be issued for maturities between a minimum of 15 days and a maximum up to one year from the date of issue. 8 What is the limit up to which a CP can be issued. The aggregate amount of CP from an issuer shall be within the limit as approved by its Board of Directors or the quantum indicated by the Credit Rating Agency for the specified rating, whichever is lower. As regards FIs, they can issue CP within the overall umbrella limit fixed by the RBI i.e., issue of CP together with other instruments viz., term money borrowings, term deposits, certificates of deposit and inter-corporate deposits should not exceed 100 per cent of its net owned funds, as per the latest audited balance sheet.
