Question : Recently SEBI has made amendments in the operational guidelines pertaining to listing of commercial papers(CP). CP was introduced in India in the __.
a. year 1990
b. year 1996
c. year 1999
d. year 1988
Ans. a.
Related facts —
- Based on feedback from market participants and recent regulatory changes, in order to bring about uniformity in requirements, certain amendments are being made to guidelines pertaining to listing of commercial paper(CP), Sebi said in a circular on December 17, 2021.
- An issuer who plans to list CP needs to forward an application for listing along with disclosures to the stock exchanges concerned.
- An issuer needs to submit details of current tranche including ISIN, amount, date of issue, maturity, all credit ratings including unaccepted ratings, date of rating, name of credit rating agency, its validity period, declaration that the rating is valid as at the date of issuance and listing, details of issuing and paying agent.
- The issuer needs to submit audited or limited review of half-yearly consolidated and standalone financial information along with auditor qualifications, if any, for last three years with latest available financial results, if the issuer has been in existence for three years and above.
- The new framework will come into effect immediately.
- CP —
- Commercial Paper(CP) is an unsecured money market instrument issued in the form of a promissory note.
- CP was introduced in India in 1990 with a view to enabling highly rated corporate borrowers to diversify their sources of short-term borrowings and to provide an additional instrument to investors.
By – Pankaj Pandey