Norms on commercial paper issuance eased

The Reserve Bank of India (RBI) on Thursday proposed to ease rules around issuance of commercial papers (CP), and allowed buybacks of these papers even as the central bank lowered the rating requirement of firms issuing these papers by one notch.
 
Commercial papers are short-term debt papers that mature within seven days to a year. In its draft guidelines, the central bank proposed the issuer of a CP can buy back the bonds. The buy-back can be in full or part and should be at prevailing market price. However, the buy-back offer, which has to be extended to all