Securities and Exchange Board of India, in its circular dated 22nd October 2019, has issued a framework for listing of Commercial Papers (CPs). The Circular is based on the recommendations of the Corporate Bonds & Securitization Advisory Committee (CoBoSAC) which was set up for making recommendations to SEBI on developing the market for corporate bonds and securitized debt instruments.
The issuers and stock exchanges shall comply with the following at the time of listing:
- An issuer who desires to list its CP shall forward an application for listing along with the disclosures specified in Annexure I to the concerned stock exchanges.
- On Approval of the listing application, the disclosure shall be made available on the website of the concerned stock exchange.
- After the listing, the issuer shall make disclosures, as specified in Annexure II, during the tenure of the CPs to the concerned stock exchanges, which shall disseminate the same on its website.
The Stock exchanges shall establish necessary systems and procedures for monitoring of these disclosures and issue a framework for imposition of fine in case of non-compliance or inappropriate disclosures by issuers. The Non-compliance shall also invite SEBI action.
Click here to read the Circular
