Commercial Paper Market

Tata Communications on Monday said it has issued commercial papers to raise Rs 465 crore. The commercial papers has been issued on February 21 with May 23, 2025 as date of redemption, the company said in a regulatory filing. "Tata Communications Limited has issued and allotted Commercial Paper aggregating to an amount of Rs 465 crore. The said Commercial Paper is listed on National Stock Exchange of India Limited on February 24, 2025," the filing said. The face value per security is Rs 5 lakh. The company has offered a discount of 7.47 per cent per annum on the security.

Certificate of Deposit rates increased by 20-30 basis points across tenures during the same period

This shift has been spurred by changes in banking regulations, making it more difficult for NBFCs, especially those with lower credit ratings, to secure bank funding

This surge in CD issuances is driven by quarter-end reporting, as funds raised through CDs are included under aggregate deposits, the report highlighted

Sebi on Friday modified the timeline for entities with listed commercial papers to report the status of their payment obligations within one working day of the payment due date, bringing it in line with the reporting requirements for non-convertible securities. The move will enhance transparency for stakeholders and ensure timely disclosures by the entities. In its circular, Sebi said, the LODR (Listing Obligations and Disclosure Requirements) rules mandate entities with listed non-convertible securities to report the status of their payment obligations (payment of interest or dividend or repayment or redemption of principal) within one working day of its payment becoming due. Earlier, the rule required issuers of listed commercial papers to submit a certificate confirming the fulfilment of their payment obligations within two days of payment becoming due. Sebi said it has amended the rule in order to align the timeline of intimating stock exchanges regarding status of payment ...

Commercial papers are an unsecured form of short-term debt issued by corporations, which serves as a financial tool primarily directed at addressing immediate financial obligations

For better transparency, issuers are now required to disclose long-term and unaccepted credit ratings in the offer document

NBFCs have the option to raise funds through commercial papers, but overreliance on short-term debt instruments could lead to an asset-liability mismatch

On a month-on-month basis, the issuances fell by around 38 per cent

In a bid to boost growth of the corporate bond market, regulator Sebi on Thursday allowed mutual funds to invest in repo transactions in securities such as Commercial Papers and Certificate of Deposits. In addition, the capital markets regulator said that mutual funds can participate in repo transactions only in "AA" and above rated corporate debt securities, according to a circular. In repo transactions, also known as a repo or sale repurchase agreement, securities are sold with the seller agreeing to buy them back at a later date. The instrument is used for raising short-term capital. For the purpose of consideration of credit rating of exposure on repo transactions for various purposes, including for potential risk class matrix, liquidity ratios and risk-o-meter, Sebi said the same will be as that of the underlying securities on a look-through basis. With regards to transactions where settlement is guaranteed by a clearing corporation, the exposure will not be considered for the

Meanwhile, issuance of commercial papers---securities sold by companies to raise funds--dropped sharply to Rs 12.5 trn in FY23 (up to Feb 28) from Rs 19 trn over the same period last year

"This part prepayment is from the existing cash balance and funds generated from the business operations," the spokesperson said in an email response

Two large companies within India's embattled Adani Group are likely to repay their short-term commercial paper (CP) debt as they come due over the next few months.

The fall was triggered by short seller Hindenburg Research's accusation against the group of accounting fraud and stock manipulation

The company will offer a yield of 7.85% for this issue for which it has received commitments worth around 2 billion rupees ($24.62 million) so far

India's Housing Development Finance Corp plans to raise funds by issuing commercial papers maturing in one year, three merchant bankers said on Thursday

A total of 484 companies were overdue on at least three commercial paper payments in the period from Aug. 1 to Dec. 31 last year, according to the Shanghai Commercial Paper Exchange.

In case of commercial papers and bonds, there will be no grace period for repayment

Rs 1.9 trn of short-term debt issued in September, against Rs 1.3 trillion in August

So far in the ongoing fiscal, BSE has enabled listing of commercial paper to the tune of Rs 4.26 lakh crore and bonds of Rs 2.82 trillion.