New Delhi: As many as 52 issuers have listed commercial papers worth over Rs 1.1 lakh crore on the BSE since November 2019.
The exchange enabled the listing of commercial papers (CPs) and announced framework for them in November 2019.
“Till date, 52 issuers have done 288 issuances of commercial papers and have successfully listed CPs of Rs 1,11,080 crore on BSE. The weighted average yield of these issuances is 6.11 per cent with an average tenor of 137 days,” the bourse said in a statement.
Besides, the BSE said nine firms have made applications with the exchange to list their CPs for a total issue size of Rs 5,950 crore. The effective date for listing of their CPs with the bourse is January 2.
The firms are Kotak Securities Ltd, Bharat Heavy Electricals Ltd, Birla Group Holdings Pvt Ltd, Power Grid Corporation of India Ltd, Kotak Mahindra Prime Ltd, Motilal Oswal Financial Services Ltd, JSW Steel Ltd, Kotak Mahindra Investments Ltd and Sharekhan BNP Paribas Financial Services Ltd.
A CP 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.
(PTI)
