Regulatory Alerts2017-10-18
Added · Updated
Issue of Commercial Papers Regulations, 2013
The regulations establish the framework for companies and body corporates to issue privately placed commercial papers, requiring a minimum equity of Rs. 25 million and prohibiting issues with overdue loans or defaults. Commercial papers must have maturities between 30 days and one year, with a minimum issue size of Rs. 10 million and denominations of Rs. 100,000 or multiples thereof. Issuers are mandated to appoint an independent Issuing and Paying Agent with specific credit ratings, complete the issue within two weeks, and submit detailed reports to the Commission within five days of issuance. Contraventions of these regulations are punishable by a fine up to Rs. 500,000, with additional daily penalties for continuing offenses.