1. Like hypothecation, under pledge mode of security, goods continue to be in possession of the borrower. 2. While a mortgage can be created only by the act of parties, a charge may be created by the...

1. Like hypothecation, under pledge mode of security, goods continue to be in possession of the borrower.

2. While a mortgage can be created only by the act of parties, a charge may be created by the operation of law also.

3. Commercial paper is a short-term secured negotiable instrument of a fixed maturity.

4. Commercial papers are regulated by the SEBI.

5. All public limited companies whose securities are listed on the stock exchange are entitled to raise funds by issuing commercial papers.

6. Factoring involves the outright sale of receivables at a discount to a factor to obtain funds.