Treasury Management

Kaizen is one of the leading national players in the Indian Treasury Market for placements of different rated treasury instruments such as CP, NCDs and PTCs issued by Corporate and other eligible institutions for different maturities. We are managing large treasuries of some of the Indian Corporates and also simultaneously placing treasury instruments for other corporate including NBFCs with Banks, FIs, Insurance Companies and Mutual Funds etc.

• Commercial Paper (CP): Commercial Paper is a rated, unsecured money market security issued by corporate, NBFCs, FIs and PDs at discount in the form of usance promissory note as a privately placed instrument with a fixed maturity of 7 days to a maximum of 1 year. It Can be mainly subscribed by Banks, FI, Insurance Companies FIIs and Mutual Funds. CP can be issued by issuers having ratings assigned by CRISIL, ICRA, FITCH and CARE having rating like P1+/P1, A1+/A1, F1+/F1 and PR1+/PR1 respectively.

• Short Term Non Convertible Debentures (NCDs):  Short Term NCDs are a unsecured, rated debt instrument issued by a Corporate (including NBFCs) with original or initial maturity upto 1 year and issued by way of private placement. NCDs shall not be issued for maturities of less than 90 days from the date of issue. The exercise date of option (put/call), if any, attached to NCDs shall not fall within the period of 90 days from the date of issue.

• Long Term Non Convertible Debentures (NCDs): Long term NCD is generally a secured rated instrument issued by corporates including NBFCs generally having a minimum rating of A+ and above from any of the rating agencies with original or initial maturity up to 15 years and issued by way of private placement basis. The proceeds from these NCDs can be used for project financing, expansion/ diversification, long term working capital requirement, normal capital expenditures etc.

• Certificate of Deposits: Certificate of deposits is a short term borrowing issued by Scheduled Banks  (except RRB and Co-operative Banks) at discount in the form of usance promissory note with a fixed maturity of 7 days to a maximum of 1 year.

• Pass Through Certificates (PTC): Banks (original lender ) through Pass Through Certificates (PTCs) sells various types of loans to another institution ( which may promote a subsidiary for this purpose called Special Purpose Vehicle, which is a sort of Trust ) as a tool for hedging risks. SPV (also called issuer ) makes the payment to the original lender for the loans purchased under the arrangement and mediates between the investor and borrower. These loans are converted into a pool of securities like debentures (called Pass Through Certificates) by SPV. The original lender may keep on getting recoveries from the original borrowers. It passes on these recoveries to the SPV. The issuer in turn passes on these recoveries to the individual / institutional investors as per the arrangement made. If the borrower starts defaulting, the SPV sells off the mortgaged asset and recover the money.