|
What are Inter-corporate Deposits (ICDs)? What are their main characteristic features?
Inter Corporate Deposits indicates unsecured short term funding raised by one company from another company. They are dependent on personal contacts.
Following are their main characteristics:
1) They are for a very short period of time i.e 3 months or 6 months.
2) They are unsecured source for raising funds.
3) They are not regulated by any law.
4) It is a relationship based borrowing made by the company.
5) They involve high risk and high returns
6) Useful in solving temporary capital crisis.
|
