types of inter-corporate deposits. merits and demerits of inter-corporate deposits
Aayushi,
There are three types of inter-corporate deposits.
1. These deposits help corporate's in solving their short-term requirements of funds.
2. These deposits are free from legal formalities.
3. There exists secrecy in the market of inter-corporate deposits.
Demerits of inter-corporate deposits
1. Risk factor is high in this market as it is not well organised market and only little information about transactions in the market are known publicly.
2. The interest paid on these deposits is higher than the interest paid on bank deposits.
3. Raising funds through this market require personal contacts.
There are three types of inter-corporate deposits.
- Three-month deposits
- Six-month deposits
- Call deposits
1. These deposits help corporate's in solving their short-term requirements of funds.
2. These deposits are free from legal formalities.
3. There exists secrecy in the market of inter-corporate deposits.
Demerits of inter-corporate deposits
1. Risk factor is high in this market as it is not well organised market and only little information about transactions in the market are known publicly.
2. The interest paid on these deposits is higher than the interest paid on bank deposits.
3. Raising funds through this market require personal contacts.