Capital markets regulator Securities and Exchange Board of India (SEBI) on Friday changed the operational guidelines related to listing of commercial papers to bring in uniformity in requirements.
To ease the compliance burden on listed entities, SEBI in August consolidated the existing procedures relating to issuance and listing of non-convertible securities, securitized debt instruments, security receipts, municipal debt securities and commercial papers.
In a circular, SEBI said based on the feedback from market participants and recent regulatory changes, in order to bring about uniformity in the requirements, certain amendments are being made in the guidelines relating to listing of Commercial Paper (CP).
An issuer planning to list a CP is required to forward an application for listing along with disclosure to the respective stock exchanges.
With regard to issuance, SEBI said that all credit ratings including ISIN, amount, date of issue, maturity, unacceptable rating to an issuer, date of rating, name of credit rating agency, its validity period, declaration of current tranche Details need to be submitted. The rating is valid as of the date of issue and listing, details of the issuing and paying agent.
With regard to financial information, SEBI said that the issuer is required to submit audited or limited review of half-yearly consolidated and standalone financial information along with auditor qualifications, if any, for the last three years along with the latest available financial results , if the issuer has been in existence for three years and more.
SEBI said that the new framework will come into force with immediate effect.
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