Apr 29, 2024

Revised Framework for Commercial Paper and NCDs

By way of Master Direction dated January 3, 2024, RBI has issued directions in relation to Commercial Paper (‘CPs’) and Non-Convertible Debentures (‘NCDs’) of original or initial maturity of up to one year (collectively, ‘Short Term Instruments’). These directions are applicable from April 1, 2024 and set out comprehensive directions relating to such Short Term Instruments, including eligible issuers, eligible investors, the form and the denomination in which such Short Term Instruments must be issued, the eligible end-uses of funds raised through the issuance of such Short Term Instruments, requirements of maintaining a credit rating, secondary trading of such Short Term Instruments, buyback and repayment of such Short Term Instruments.




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