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Central bank relaxes rating requirement on CP issuance

According to latest RBI data, the total outstanding in CPs was at Rs 3,29,420 crore as of June-end

Anup Roy  |  Mumbai 

Reserve Bank of India
Reserve Bank of India

The (RBI) on Thursday made it mandatory for (CP) issuances to come with two ratings, effective from October 1, while relaxing the minimum size of issuance to Rs 5 lakh from Rs 10 lakh earlier. According to the latest data, the total outstanding in CPs was at Rs 3,29,420 crore as of June-end.
 
“Eligible issuers, whose total during a calendar year is Rs 1,000 crore or more, shall obtain credit rating for issuance of CPs from at least two (credit rating agencies) registered with and should adopt the lower of the two ratings,” said

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