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

The Reserve Bank of India (RBI) on Thursday made it mandatory for commercial paper (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 RBI data, the total outstanding in CPs was at Rs 3,29,420 crore as of June-end.

 

“Eligible issuers, whose total CP issuance 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 Sebi and should adopt the lower of the two ratings,” said RBI.