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Collapse of commercial papers volume puts debt schemes at risk: Ind-Ra

Generally, the daily volume is Rs 10-15,000 crore in CPs in the secondary market

money, cash, private equity

money, cash, private equity

Anup Roy Mumbai
The daily average trading volume of commercial papers has fallen to less than 1 per cent of the outstanding amount, and just about 1 per cent of the holding of debt mutual funds (MFs), posing a serious challenge to the liquidity profile of these MFs, India Ratings & Research (Ind-Ra) has warned. 

The total outstanding of commercial papers is close to Rs 4.3 trillion. The average trading volume is now less than Rs 4,000 crore. 

Non-banking financial companies (NBFCs) and housing finance companies (HFCs) are the major issuers of commercial papers. 

Generally, the daily volume is Rs 10-15,000 crore in commercial papers in

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First Published: May 28 2020 | 10:20 PM IST

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