Bill Market
ASSIGNMENT
Recent developments in Commercial Bill Market
NOVEMBER 30, 2009
University School of Management Studies
Guru Gobind Singh Indraprastha University
Delhi
Submitted By:
SACHIN GOEL (68)
MANAV MUDGAL (69)
GH Batch
MBA (IIIrd SEMESTER)
Commercial bill
A non-bank bill of exchange (loan) generated by merchant or investment banks and companies. The bill is evidence of the borrower's debt and commitment to repay at the due date. These bills are covered by the Bills of Exchange Act 1909 - 73, as are bank bills, but they are called 'commercial' to indicate they are issued by institutions other than banks.
Types of Commercial Bills:
Commercial bill is an important tool finance credit sales. It may be a demand bill or a usance bill. A demand bill is payable on demand, that is immediately at sight or on presentation by the drawee. A usance bill is payable after a specified time. If the seller wishes to give sometime for payment, the bill would be payable at a future date. These bills can either be clean bills or documentary bills. In a clean bill, documents are enclosed and delivered against acceptance by drawee, after which it becomes clear. In the case of a documentary bill, documents are delivered against payment accepted by the drawee and documents of bill are filed by bankers till the bill is paid.
Commercial bills can be inland bills or foreign bills. Inland bills must (1) be drawn or made in India and must be payable in India: or (2) drawn upon any person resident in India. Foreign bills, on the other hand, are (1) drawn outside India and may be payable and by a party outside India, or may be payable in India or drawn on a party in India or (2) it may be drawn in India and made payable outside India. A related classification of bills is export bills and import bills. While export bills are drawn by exporters in any country outside India, import bills are drawn on importers in India by exporters abroad.
The indigenous variety of
Recent developments in Commercial Bill Market
NOVEMBER 30, 2009
University School of Management Studies
Guru Gobind Singh Indraprastha University
Delhi
Submitted By:
SACHIN GOEL (68)
MANAV MUDGAL (69)
GH Batch
MBA (IIIrd SEMESTER)
Commercial bill
A non-bank bill of exchange (loan) generated by merchant or investment banks and companies. The bill is evidence of the borrower's debt and commitment to repay at the due date. These bills are covered by the Bills of Exchange Act 1909 - 73, as are bank bills, but they are called 'commercial' to indicate they are issued by institutions other than banks.
Types of Commercial Bills:
Commercial bill is an important tool finance credit sales. It may be a demand bill or a usance bill. A demand bill is payable on demand, that is immediately at sight or on presentation by the drawee. A usance bill is payable after a specified time. If the seller wishes to give sometime for payment, the bill would be payable at a future date. These bills can either be clean bills or documentary bills. In a clean bill, documents are enclosed and delivered against acceptance by drawee, after which it becomes clear. In the case of a documentary bill, documents are delivered against payment accepted by the drawee and documents of bill are filed by bankers till the bill is paid.
Commercial bills can be inland bills or foreign bills. Inland bills must (1) be drawn or made in India and must be payable in India: or (2) drawn upon any person resident in India. Foreign bills, on the other hand, are (1) drawn outside India and may be payable and by a party outside India, or may be payable in India or drawn on a party in India or (2) it may be drawn in India and made payable outside India. A related classification of bills is export bills and import bills. While export bills are drawn by exporters in any country outside India, import bills are drawn on importers in India by exporters abroad.
The indigenous variety of