SEBI amends operational guidelines on listing of Commercial Papers

The Securities and Exchange Board of India “SEBI” vide circular no. SEBI/HO/DDHS/P/CIR/2021/613 dated 17.12.2021 consolidated existing procedures pertaining to issue and listing of Non-convertible Securities, Securitized Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper.

Applicability:

• Issuers who have listed and/or proposed to list Commercial Paper;
• Recognized Stock Exchanges;
• Registered Depositories;
• Registered Credit Rating Agencies, Debenture Trustees;
• Depository Participants, Merchant Bankers Registrars to an Issue and Share Transfer Agents, Bankers to an Issue

Amended Provision

An issuer who plans to list Commercial Paper needs to forward an application for listing along with disclosures to the stock exchanges concerned.

With regards to issue

SEBI said an issuer needs to submit following details:

• Details of current tranche including International Securities Identification Number (ISIN);
• Amount, Date of Issue, Maturity;
• All credit ratings including unaccepted ratings, date of rating, name of credit rating agency, its validity period along with the declaration that the rating is valid as at the date of issuance and listing;
• Details of issuing and paying agent

With regards to financial information

SEBI said an issuer needs to submit the audited or limited review of half-yearly consolidated and standalone financial information (i.e., Balance Sheet, Statement of Profit & Loss and Cash Flow Statement) along with auditor qualifications, if any,

• If the Issuer has been in existence for more than 3 years, needs to submit financial information for three years along with latest available financial results
• If the Issuer has been in existence for less than 3 years, needs to submit financial information pertaining to the year of existence

Himanshu Garg, Audit Associate, SW India