Framework for listing of Commercial Paper
1. The issuers of Commercial Papers (CPs) have shown interest to list CPs for trading on Stock Exchange(s) with a view to broadening investor participation in CPs. Accordingly, to enable listing of CPs and to ensure investor protection, it is important that issuers make appropriate disclosures at the time of listing and on a continuous basis.
2. In view of the above, a disclosure framework applicable for listing of CPs was discussed in the meeting of Corporate Bonds & Securitization Advisory Committee (CoBoSAC), chaired by Shri H. R. Khan.
3. Based on recommendations of CoBoSAC, for listing of CPs, issuers and stock exchanges shall comply at the time of listing and on a continuous basis with the following;
a. An issuer who desires to list its CP shall forward an application for listing along with the disclosures specified to the concerned stock exchange(s).
b. On approval of the listing application by the concerned stock exchange(s), the disclosures so provided along with the application for listing, shall be made available on the website of the concerned stock exchange(s).
c. Post listing, the issuer shall make disclosures during the tenure of the CP(s) to the concerned stock exchange(s), which in turn shall disseminate the same on its website.
4. The Stock exchange(s) are advised to put in place;
a. Necessary systems and procedures for monitoring of disclosures as specified of this circular.
b. A framework for imposition of fine, in case of non-compliance and/ or inappropriate disclosures by issuers.
Please find the attached format.
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