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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
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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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