Aditya Birla Finance becomes first company to list commercial papers on exchanges
The stock exchanges had on November 27 issued frameworks for the listing of CPs to improve investor's participation in the securities.
November 29, 2019 / 11:57 AM IST
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A day after stock exchanges issued framework for the listing of commercial papers (CPs), Aditya Birla Finance (ABFL) on November 28 listed its CPs on the BSE and NSE.
Both exchanges said ABFL was the first company to list its CPs with them. These will mature on February 7, 2020.
The non-banking finance (NBFC) arm of Aditya Birla Capital, ABFL is well-diversified with a long-term credit rating of AAA (Stable) from ICRA and India Ratings.
The stock exchanges had on November 27 issued frameworks for the listing of CPs to improve investor's participation in the securities. It is expected to broaden investors' participation in such securities.
"Listing of CPs is expected to lead to efficient transmission of information regarding corporate borrowings and liquidity positions to market participants," an NSE statement read.
It will also contribute effectively towards the development of the CP market and is expected to have a positive effect on the debt capital market, it added.
A CP is an unsecured money market instrument issued as promissory notes that enable highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.
CPs can be issued for maturities ranging between a minimum of seven days and a maximum of one year from the date of issue. They are usually issued at a discount from face value and reflect prevailing market interest rates.(With inputs from PTI)