Companies which have raised monies through fixed deposits are now required to have a credit rating agency rate the instruments
Q: My father who is in India has some surplus funds which he would like to invest. In the past, he had invested in fixed deposits of public limited companies. He wants to make further investments in corporate fixed deposits. However, I am not keen on further investment in these instruments in view of the risk factor. Is this risk exaggerated?
– T.K. Mathew, Dubai
A: In the past, corporate fixed deposits were at great risk because these instruments did not require credit rating. However, under the Companies Act, 2013, companies which have raised monies through fixed deposits …
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