Distinguish between the following: (ii) Commercial bill and Commercial paper

(ii) Commercial Bill and Commercial Paper Commercial Bills: Commercial bills are basically negotiable instruments accepted by buyers for goods or services obtained by them on credit. Such bills being bills of exchange can be kept upto the due maturity date and encashed by the seller or may be endorsed to a third party in payment of dues owing to the latter. The most common practice is that the seller who accept the bills of exchange and get it discounted with the bank or financial institution or a bill discounting house and collects the money (less the interest charged for the discounting). Commercial Paper (CP): Commercial Paper (CP) is an an unsecured money market instrument issued in the form of a promissory note. CP, as a privately placed instrument, was introduced in India in 1990 with a view to enable highly rated corporate borrowers to diversify their sources of short-term borrowings and to provide an additional instrument to investors. Subsequently, primary dealers (PDs), and all-India financial institutions were also permitted to issue CP to enable them to meet their short-term funding requirements for their operations.