A STUDY “ON COMMERCIAL PAPER PROGRESSIVE ISSUE BY ICICI BANK

Abstract

Commercial paper (CP) is a short-term debt instrument widely utilized in the money market.
It represents a promissory note issued by corporations, financial institutions, or governments
to meet their immediate funding requirements. Commercial paper typically matures within
270 days, making it a short-term financial instrument. This aligns with the key feature of
money market instruments. Corporations with high credit ratings, financial institutions, and
occasionally, governments issue commercial paper. The creditworthiness of the issuer is
crucial in determining the interest rate. Corporations often utilize commercial paper to fund
short-term operational needs such as inventory purchases, payroll, and other working capital
requirements.
Commercial paper stands as a vital component of the money market, offering issuers a
flexible financing tool and providing investors with a short-term, relatively secure investment
option. Its dynamics reflect the interplay of credit risk, market demand, and the financial
needs of corporations, contributing to the overall efficiency and functioning of the money
market.
Study of Commercial Paper issued by ICICI for the duration of 2019-2023 and the
fluctuations observed under different parameters and the rating towards the same.