Three companies listed their commercial papers on the Bombay Stock Exchange on Thursday, increasing the total number of such listings to seven since the framework came into effect last month.
Listing of commercial papers is expected to result in efficient transmission of information regarding corporate borrowings and liquidity positions to market participants. The move is expected to have a positive effect on the debt capital market.
In a statement, BSE said National Fertilizers Ltd., Chennai Petrochemicals Corporation Ltd., and GIC Housing Finance Ltd. filed applications to list commercial papers on the exchange for issue sizes of Rs 1,600 crore, Rs 900 crore and Rs 100 crore, respectively.
Aditya Birla Finance, NTPC Ltd., Indian Oil Corporation Ltd. and Can Fin Homes are the other companies that have listed their commercial papers on the BSE.
A commercial paper is an unsecured money market instrument issued in the form of promissory notes that enables highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.
Such instruments can be issued for maturities between a minimum of seven days and a maximum of one year from the date of issue. Commercial papers are usually issued at a discount from face value and reflect prevailing market interest rates.
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