What is meant by
ICD or also known as Inter Corporate Deposits. It is an unsecured form of raising short term finance by one company from another company. It is done on the basis of personal contacts. Following ae the features of ICD
- It is for very short period of time ( For 3 to 6 months)
- It is an unsecured form of raising funds.
- It is given and taken on the relationship made by the company.
- It involves high risk and return.
- It helps in solving temporary capital crisis.