The Bombay Stock Exchange on Friday said state-owned NTPC Ltd. has filed an application to list commercial papers on the stock exchange for an issue size of Rs 1,500 crore.
After the process, the effective date of listing of such papers at the exchange will be Dec. 2, BSE said in a statement.
On Thursday, non-banking financial company Aditya Birla Finance Ltd. became the first company to list commercial papers on the BSE and the National Stock Exchange. The move came after the exchanges came out with a framework for listing of commercial papers in a bid to broaden investors' participation in such securities.
A commercial paper is an unsecured money market instrument issued in the form of promissory notes that enable highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.
Commercial papers can be issued for maturities between a minimum of seven days and a maximum of up to one year from the date of issue. commercial papers are usually issued at a discount from face value and reflects prevailing market interest rates.
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