Negotiable Instruments Of Money Market


 
 
Concept Explanation
 

Negotiable Instruments Of Money Market

Definition of Negotiable Instruments

According to section 13 of the Negotiable Instruments ACT, 1881, a negotiable instrument means "promissory note, bill of exchange. or cheque, payable either to order or to bearer".

Types Of Negotiable Instruments

According to the Negotiable Instruments Act, 1881 there are three types of negotiable instruments i.e., promissory note bill of exchange and cheque. However many other document are also recognized as negotiable instruments on the basis of custom and usage. like hundis, treasury bills, share warrants, etc.. provided they possess the features of negotiability. In the following sections, we shall study about Promissory Notes (popularly called pro notes), Bills of Exchange (popular) called bills), Cheques and Hundis (a popular indigenous document prevalent in India), in detail.

Promissory Note (Section - 4 of N.I.ACT 1881)

  • Suppose you take a loan of Rupees Five Thousand from your friend Ramesh. You can make a document stating that you will pay the money to Ramesh or the bearer on demand. Or you can mention in the document that you would like to pl the amount after three months.
  • .... (More Text Available, Login?)
     
     


    Students / Parents Reviews [20]