Aditya Birla Finance Ltd. became the first company to list a commercial paper on the National Stock Exchange. The paper will mature in February next year.
The move will help commercial paper issuers make appropriate disclosures on a continuous basis and will lead to deepening of the debt markets in the country, the exchange said in a statement.
The debt instrument issued by Aditya Birla Capital Ltd.'s lending arm is expected to mature on Feb. 7, 2020, the statement said. The Rs 100-crore commercial paper yields 5.38 percent interest, Bloomberg reported citing an unnamed source.
SEBI's announcement to list commercial papers is a welcome move for the industry as it will encourage further transparency and better corporate governance practice. We aim to set standards for commercial paper issuance which will bring in liquidity, transparency and thereby create trust in the minds of investors.Rakesh Singh, Chief Executive Officer, Aditya Birla Finance
The move comes just a day after Bombay Stock Exchange and NSE came out with a framework for listing of commercial papers issued on or after Nov. 27, a move aimed at broadening investors' participation in such securities.
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