Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.
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.
CP can be issued in denominations of Rs.5 lakh or multiples thereof.
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.
Any scheduled bank can act as an IPA for issuance of CP.
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.
Yes. CP is issued at a discount to face value as may be determined by the issuer
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).