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    Question

    In India, Commercial Papers are issued as per the

    guidelines issued by:
    A SEBI Correct Answer Incorrect Answer
    B RBI Correct Answer Incorrect Answer
    C Forward Market Commission Correct Answer Incorrect Answer
    D AMFI Correct Answer Incorrect Answer
    E IRDA Correct Answer Incorrect Answer

    Solution

    Commercial Paper (CP) is a short term monetary instrument in the Indian Money Market. It is unsecured and issued in the form of a promissory note. It acts as the debt instrument to be used by large corporate companies for borrowing short-term monetary funds in the money market. Being a money market instrument, it comes under the regulatory purview of the Reserve Bank of India (RBI) which issues guidelines for CP issues.

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