Leading stock exchange BSE on Friday said as many as four companies, including SBI Cards and Payment Services and ICICI Home Finance Company, have made application to list their commercial papers. The other companies that made applications with the exchange are GIC Housing Finance and Aditya Birla Money.
Post process, the effective date of listing for the commercial paper at the exchange will be December 23, the BSE said in a statement. Till date 17 issuers have done 37 issuances of commercial paper and have successfully listed CPs of Rs 18,885 crore on the BSE, the exchange noted.
According to the BSE, SBI Cards and Payment Services, ICICI Home Finance Company, GIC Housing Finance and Aditya Birla Money filed application to list CPs on the BSE for an issue size of Rs 500 crore, Rs 300 crore, Rs 150 crore and Rs 100 crore, respectively.
Commercial paper is an unsecured money market instrument issued in the form of promissory notes that enables highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.
Such instruments can be issued for maturities between a minimum of 7 days and a maximum of one year from the date of issue. CPs are usually issued at a discount from face value and reflect prevailing market interest rates.