Regulatory Alerts2006-01-11
Commercial Paper Exemption Notice Under the Banks Act, 1990
The Deputy Registrar of Banks designates the issuance of commercial paper as an activity exempt from the statutory definition of banking business under the Banks Act, 1990, effective 1 January 1995. The notice establishes strict eligibility criteria for issuers, mandates minimum denominations of R1 million, and restricts fund utilization strictly to operating capital while prohibiting overnight funding and market-making for unlisted instruments. Issuers must comply with comprehensive disclosure requirements in placing documents, obtain auditor confirmations, and submit quarterly statistical returns to the Registrar of Banks.
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