DPC (Deferred Price Certificate)

Definition of "DPC (Deferred Price Certificate)"

A proposed financial instrument for financing those public projects that do not generate any explicit income. The certificates are proposed to be issued by a public body, carrying different maturities. They would be en cash able at face value. But the holders would be able to transfer them to another party for the purchase of goods and services. Since they will be en cash able over a long period (1 year plus), investors for a very short period will not be able to buy them. There would not be any secondary market for them. It would introduce certain amount of illiquidity in the financial market, which could be an advantage as it would lead to greater monetary stability.