Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Reliance provides its clients an access to different debt instruments including TFCs / Commercial Paper in Pre - IPO.
A corporate debt instrument issued by companies to generate short and medium-term funds.
Corporate TFCs offer institutional investors, in particular retirement funds and insurance companies, with a viable
high yield alternative to the National Saving Schemes (NSS) and bank deposits.
TFCs are also an essential complement to risk free, lower yielding government bonds such as PIB.
TFCs can be issued both as a fixed or floating rate instrument and may have a call or put option.
TFC Rating
Like bonds, TFCs are structured to provide regular income in the form of coupons.
Unlike a generic bond, a TFCs principal may gradually be redeemed over the tenor of the instrument.
TFCs are exempt from Capital gain tax. However, coupons payments are subject to income tax.
Redeemable capital
Monitored by Trustee
Return on investment may be fixed or floating
___________________________________________________________________________
Commercial Paper
For the investor they are highly flexible, offer attractive interest rates and carry diversified investment risks.
Due to varying credit standings, investments in commercial papers may bring in higher yields than time
deposits with lower risks.
It is considered to be a safe investment since the financial situation of a company can easily be predicted over
a short period.