nter-Corporate Deposit (ICD) is an unsecured loan extended by one corporate to another.

Existing
mainly as a refuge for low rated corporates, this market allows funds surplus corporates to lend to
other corporates. Also the better-rated corporates can borrow from the banking system and lend in
this market. As the cost of funds for a corporate in much higher than a bank, the rates in this market
are higher than those in the other markets. ICDs are unsecured, and hence the risk inherent in high.
The ICD market is not well organised with very little information available publicly about transaction
details.

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Read ter-corporate Deposits: Under this arrangement one company makes a deposit
with another company, normally for a period above six months. For example, Firm ‘A’
deposited an amount of Rs 5 lakhs for a period of 6 months in Firm ‘B’. This is referred
as inter-corporate deposit.
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