Commercial Paper Market

Meanwhile, issuance of commercial papers---securities sold by companies to raise funds--dropped sharply to Rs 12.5 trn in FY23 (up to Feb 28) from Rs 19 trn over the same period last year

"This part prepayment is from the existing cash balance and funds generated from the business operations," the spokesperson said in an email response

Two large companies within India's embattled Adani Group are likely to repay their short-term commercial paper (CP) debt as they come due over the next few months.

The fall was triggered by short seller Hindenburg Research's accusation against the group of accounting fraud and stock manipulation

The company will offer a yield of 7.85% for this issue for which it has received commitments worth around 2 billion rupees ($24.62 million) so far

India's Housing Development Finance Corp plans to raise funds by issuing commercial papers maturing in one year, three merchant bankers said on Thursday

A total of 484 companies were overdue on at least three commercial paper payments in the period from Aug. 1 to Dec. 31 last year, according to the Shanghai Commercial Paper Exchange.

In case of commercial papers and bonds, there will be no grace period for repayment

Rs 1.9 trn of short-term debt issued in September, against Rs 1.3 trillion in August

So far in the ongoing fiscal, BSE has enabled listing of commercial paper to the tune of Rs 4.26 lakh crore and bonds of Rs 2.82 trillion.

"The delay in reporting is due to efforts being made by the company to make payment by mobilising certain funds to make payment and then submit report of having repaid with delay," FEL said

In August, the non-banking sector raised Rs 98,742 crore through the commercial paper route, which is the same amount they had raised between April to July

The purchase of bonds/commercial papers of Rs 6,125 crore, including Rs 5,550 crore of bonds/commercial papers (CP) rated below AA, is currently under various stages of approval/at negotiation stage

The commercial papers were issued in favour of investors like State Bank of India and ICICI Bank.

Generally, the daily volume is Rs 10-15,000 crore in CPs in the secondary market

The Fed said the Treasury will provide $10 billion of credit protection to the central bank's commercial paper operation

Besides, HDFC Securities Ltd, Shriram City Union Finance Ltd and KEC International Ltd made applications to list their CPs at BSE for issue size of Rs 490 crore, Rs 477 crore and Rs 20 crore

Steel Authority of India Ltd, Kotak Mahindra Prime Ltd, Manappuram Finance Ltd and JM Financial Products Ltd are the firms

After the process, the effective date for listing of commercial papers (CPs) with the exchange will be January 1, 2020, it added.

Leading stock exchange BSE on Thursday said SBI Cards & Payments Services has made an application to list commercial paper for an issue size of Rs 400 crore. Post process, the effective date of listing for the commercial paper at the exchange will be December 13, BSE said in a statement. With this, the number of companies listing their commercial paper (CP) on BSE BONDS platform will reach eight since the stock exchange came out with the framework for listing of such instruments late last month. Also, the funds raised by these firms will reach Rs 9,270 crore. Listing of CPs is expected to lead to efficient transmission of information regarding corporate borrowings and liquidity positions to market participants. Besides, it will contribute effectively towards development of the commercial paper market and is expected to have a positive effect on the debt capital market. Commercial paper is an unsecured money market instrument issued in the form of promissory notes that enables ...