Aditya Birla Finance becomes first NBFC to list commercial paper on bourses

ABFL is a diversified non-banking finance company with a long-term credit rating of AAA (Stable) from both Icra as well as India Ratings

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Non-bank lender Aditya Birla Finance on Thursday became the first company to list its commercial papers borrowing of Rs 100 crore on the bourses.

The Kumarmangalam Birla-led company listed its CPs on NSE with a value date of November 28, 2019 and maturity date on February 7, 2020 on BSE and NSE, both the bourses said in separate statements.

"Trust in the system can only be restored with complete transparency. Through this pioneering move, we aim to set standards for commercial paper issuance which will bring in liquidity, transparency and thereby create trust in the minds of investors," Aditya Birla Finance managing director and CEO, Rakesh Singh, said in a statement.

In October, the capital markets regulator Securities and Exchange Board of India (Sebi) asked exchanges to put in place a necessary framework for systems and procedures for listing of commercial papers.

Under the guidelines, an issuer who desires to list its CPs needs to send an application for listing along with the specified disclosures to stock exchanges.

Companies, NBFCs, other entities with a net worth of at least Rs 100 crore and any other security specifically allowed by Reserve Bank of India (RBI) are eligible to list commercial papers.

ABFL is a diversified non-banking finance company (NBFC) with a long-term credit rating of AAA (Stable) from both Icra as well as India Ratings.

"We are hopeful that this will enhance transparency and enable efficient information dissemination to investors leading to deepening of investments in money market instruments," NSE's head (listing) Ishita Vora said.