Abstract
The growth of the Indian economy is possible only through large-scale investment in the manufacturing and production sector. The corporate sector is concerned about the liquidity of funds rather than returns because of cash requirements. However, public sector companies (PSCs) that are highly profitable don’t tend to use all of the options because of the guidelines set by the government regarding their investment of surplus cash. This study explores alternatives for the PSCs’ investment of surplus funds, keeping well within the government guidelines and providing greater returns and liquidity at the same time.
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