Framework for listing of Commercial Paper
Summary
This circular establishes a disclosure framework for the listing of Commercial Papers (CPs) to ensure investor protection and broadened participation. It mandates that issuers submit specific disclosures at the time of listing and continue to provide updates on a continuous basis throughout the CP's tenure. Stock exchanges are required to monitor these disclosures and establish frameworks for imposing fines in case of non-compliance.
Text
The issuers of Commercial Papers (CPs) have shown interest to list CPs for trading on Stock Exchange(s) with a view to broadening investor participation in CPs. Accordingly, to enable listing of CPs and to ensure investor protection, it is important that issuers make appropriate disclosures at the time of listing and on a continuous basis.
Based on recommendations of CoBoSAC, for listing of CPs, issuers and stock exchanges shall comply at the time of listing and on a continuous basis with the following;
An issuer who desires to list its CP shall forward an application for listing along with the disclosures specified in Annexure I to the concerned stock exchange(s).
On approval of the listing application by the concerned stock exchange(s), the disclosures so provided along with the application for listing, shall be made available on the website of the concerned stock exchange(s).
Post listing, the issuer shall make disclosures, as specified in Annexure II, during the tenure of the CP(s) to the concerned stock exchange(s), which in turn shall disseminate the same on its website.
Necessary systems and procedures for monitoring of disclosures as specified in Annexure I & II of this circular.
A framework for imposition of fine, in case of non-compliance and/ or inappropriate disclosures by issuers.
Any non-compliance with the conditions of listing issued under this circular may also attract action under Securities and Exchange Board of India Act, 1992.
This Circular is issued in exercise of powers conferred under Section 11(1) of Securities and Exchange Board of India Act, 1992.
Details of the issuer including name, address, CIN, PAN, line of business, chief executive, group affiliation; details of directors including name, age, address, designation, DIN; and details of change in directors in last three financial years.
List of top 10 holders of equity shares of the company as on date or the latest quarter end, including category, total no. of equity shares, no of shares in demat form, and total shareholding as % of total no. of equity shares.
List of top 10 debt securities holders and top 10 CP holders, including category, face value, holding, and percentage of total debt/CP outstanding.
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Source: SecMarx — Framework for listing of Commercial Paper. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.