The BSE on November 29 said state-owned NTPC has made an application to list commercial papers on the stock exchange for an issue size of Rs 1,500 crore. After the process, the effective date of listing of such papers at the exchange will be December 2, the BSE said in a statement.
On Thursday, non-banking financial company Aditya Birla Finance Ltd (ABFL) became the first company to list CP on the two exchanges BSE and NSE.
The move came after the exchanges came out with a framework for listing of CPs in a bid to broaden investors' participation in such securities.
CP is an unsecured money market instrument issued in the form of promissory notes that enable highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.
Commercial papers can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue. CP are usually issued at a discount from face value and reflects prevailing market interest rates.
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