A foreign company 'Zylo Ltd.' wants to collect money from the capital market of India. The finance manager of the company, Mr. Robert wants to issue a financial instrument which instead of being in dollars shall be dominated in rupees.One characteristics of this financial instrument is that it can be listed in any Indian stock exchange. Identify the financial instrument.

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Solution

Dear student
The financial instrument identified is Cash instrument.
Cash instrument is that whose value is determined directly by the markets. They can be securities, which are readily transferable, and instruments such as loans and deposits, where both borrower and lender have to agree on a transfer.
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