HDFC, JSW Steel, 2 others to list commercial papers on BSE

Leading stock exchange BSE on Monday said as many as four companies, including Housing Development Finance Corporation (HDFC) and JSW steel, have filed applications to list their commercial papers (CPs).

The other companies that made applications with the exchange are Steel Authority of India Limited (SAIL) and CEAT Ltd.

Post process, the effective date of listing for CPs at the exchange will be December 24, the exchange said in a statement.

Till date, 19 issuers have done 43 issuances of CPs and have successfully listed CPs of Rs 22,170 crore on the BSE, the exchange noted.

SAIL, HDFC, JSW Steel and CEAT made an application to list CPs at BSE for an issue size of Rs 1,800 crore, Rs 1,100 crore, Rs 335 crore and Rs 50 crore, respectively, the exchange said.

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 seven 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.