Publish On: 2019-05-17

Lewis anna

Total Post: 755

Question: Define inter-corporate deposits.

Reply On: 2013-06-22


Total Post: 8

ANS: Define inter-corporate deposits.

Inter-corporate lending borrowing or deposits (ICDs) is a popular short-term investment alternative for companies in India. Generally a cash surplus company will deposit (lend) its funds in a sister or associate companies or with outside companies with high credit standing. In practice, companies can negotiate inter-corporate borrowing or lending for very short periods. The risk of default is high, but returns are quite attractive.

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