As many as three companies — National Fertilizers, Chennai Petrochemicals Corporation and GIC Housing Finance — listed their commercial papers on the BSE on Thursday.
With this, a total seven companies have listed their commercial papers (CPs) on the BSE since the stock exchange came out with the framework for listing of such instruments late last month.
In a statement, the exchange said, National Fertilizers, Chennai Petrochemicals and GIC Housing Finance filed applications to list CPs on the BSE for an issue size of Rs 1,600 crore, Rs 900 crore and Rs 100 crore, respectively.
Listing of CPs is expected to lead to efficient transmission of information regarding corporate borrowings and liquidity positions to market participants.
Also, it will contribute effectively towards development of the commercial paper market and is expected to have a positive effect on the debt capital market.
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 7 days and a maximum of one year from the date of issue. CPs are usually issued at a discount from face value and reflect prevailing market interest rates.
So far, Aditya Birla Finance, NTPC, Indian Oil Corporation and Can Fin Homes have listed their CPs on the BSE.
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