Understand CCD & CPS.

 Certificates of Deposit

It is a fixed income financial tool that is governed by Reserve Bank of India and is issued in a dematerialized form. It is a type of agreement made between the depositors and the banks, wherein bank pays an interest on your investment for a tenure. Certificates of deposit are issued by the Scheduled Commercial Banks (SCBs) and All-India Financial Institutions. There is a term period of 1 month to 1 year for CDs that are issued by SCBs, whereas the term period ranges from 1 year to 3 years for CDs issued by financial institutions. CDs in dematerialized forms can be transferred through endorsement or delivery. There is no lock-in period for a CD. Major issuers: All Banks

Commercial Papers

Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. Highly rated corporate borrowers, primary dealers (PDs) and satellite dealers (SDs) and all-India financial institutions (FIs) which have been permitted to raise resources through money market instruments under the umbrella limit fixed by Reserve Bank of India are eligible to issue CP. CP can be issued for maturities between a minimum of 15 days and a maximum upto one year from the date of issue. CP can be issued in denominations of Rs.5 lakh or multiples thereof. Major issuers: Finance companies including TATA, HDFC, Kotak, Aditya Birla, Axis etc.

How to invest?

Primary Market: The investor directly approaches the issuer or the broker / arranger for investing in the primary issue. Only demat and bank details are required.

Secondary Market: Registration on CCIL F-TRAC platform is required for investing / trading through the secondary market. F-TRAC is order matching platform for buy & sell of CPs & CDs. Trades matched on the F-TRAC platform goes to NSE clearing Ltd or ICCL for the settlement as selected while order matching. Registered members can only enter orders of buy or sell for the matching. No Broker can put the trade on behalf of the client. A client can buy from a broker as the counter party only but have to put buy/sell order for matching from their F-TRAC login.

Lot Size: Face Value of a CP/CD is INR 5 lakhs/unit but most of the trades happens in the multiples of INR 5 Crs. Over 90% of trades in the secondary market happen in the lot size of INR 25 Crs.

Daily Volumes:

Primary Market: CD: 900 Crs to 10000 Crs with average yield of 7.77% to 8.31%. CP: INR 3000 Crs to 12000 Crs with yield ranging from 8.22% to 9.23%

Secondary Market: CD: 3000 Crs to 10000 Crs with average yield of 6.9% to 7.55%. CP: INR 1200 Crs to 6500 Crs with yield ranging from 6.97% to 7.96%

Below link can give daily volumes in primary & secondary market.
https://www.ftrac.co.in/CD_PRI_MEM_MARK_WATC_VIEW.aspx

Settlement Cycle: T+0, T+1 & T+2. (99% trades happen as T+0 or T+1)

Charges for F-TRAC:

One-time registration fees:

CD: INR 29,500 inclusive of taxes

CP: INR 29,500 inclusive of taxes

Annual maintenance charges:

Annual Maintenance Charges would also be levied on a per segment basis based on number of transactions of concerned member in the previous financial year as per following slabs:

Sr. No.	Trade Count in Previous Financial Year	Charges Applicable
1	0 to less than 10 Trades	Rs. 2,500/-
2	10 to less than 100 Trades	Rs.5,000/-
3	100 Trades and above	Rs.7,500/-