Companies, including Non-Banking Finance Companies (NBFCs) and All India Financial Institutions (AIFIs), are eligible to issue CPs subject to the condition that any fund-based facility availed of from bank(s) and/or financial institutions is classified as a standard asset by all financing banks/institutions at the time of issue.
Other entities like co-operative societies/unions, government entities, trusts, limited liability partnerships and any other body corporate having presence in India with a net worth of ₹100 crore or higher subject to the condition as specified under (a) above.
Any other entity specifically permitted by the Reserve Bank of India (RBI).
All residents, and non-residents permitted to invest in CPs under Foreign Exchange Management Act (FEMA), 1999 are eligible to invest in CPs; however, no person can invest in CPs issued by related parties either in the primary or secondary market.
Investment by regulated financial sector entities will be subject to such conditions as the concerned regulator may impose.
CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue. However, the maturity date of the CP should not go beyond the date up to which the credit rating of the issuer is valid.
Yes. CP may be issued on a single date or in parts on different dates provided that in the latter case, each CP shall have the same maturity date. Further, every issue of CP, including renewal, shall be treated as a fresh issue.
Eligible issuers, whose total CP issuance during a calendar year is ₹ 1000 crore or more, shall obtain credit rating for issuance of CPs from at least two Credit Rating Agencies registered with SEBI and should adopt the lower of the two ratings. Where both ratings are the same, the issuance shall be for the lower of the two amounts for which ratings are obtained.
The minimum credit rating for a CP shall be ‘A3’ as per rating symbol and definition prescribed by SEBI.
Yes. A CP will be issued in the form of a promissory note and will be held only in dematerialised form through any of the depositories approved by and registered with SEBI.
The investor can hold CP in same account along with other securities like equity, debentures, bonds, etc. However, if an investor desires, the investor can hold the CP in a separate demat account also. NSDL has no restriction if existing account/different accounts are used for holding CPs in dematerialised form.
Yes. CPs are actively traded in the OTC market. Such transactions are to be reported to the Financial Market Trade Reporting and Confirmation Platform (“F-TRAC”) of Clearcorp Dealing System (India) Ltd. within 15 minutes of the trade by all eligible market participants.
Buyer and Seller decide upon price and quantity of securities to be transacted. Seller authorises its DP through delivery instructions to debit his account and transfer the securities into the account of Buyer who may have opened account with the same or any other DP. Buyer receives the securities in its account immediately if the buyer has provided standing instruction to its DP. Settlement of funds is between the parties as agreed between them.
For account transfers, NSDL charges the DPs and not the investors. NSDL's charges to its DPs are fixed and are based on the usage of NSDL system. Complete details of NSDL charges as are payable by the DPs are available on NSDL website (www.nsdl.co.in). The charge payable by the investor to the DP is determined as per the agreement between the investor and the DP
No. A single consolidated account statement received by investor will reflect all holdings and transactions in a particular account irrespective of type of instrument(s).
