STCI Primary Dealer Ltd.

Products

Skip Navigation Links.

Commercial Paper 


 
A Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. With a view to enable highly rated corporate borrowers to diversify their sources of short-term borrowing and also provide an additional instrument to investors, RBI introduced Commercial Papers as a money market instrument in the Indian financial market in 1990.
 
Corporates and primary dealers (PDs), and all-India financial institutions (FIs) that have been permitted to raise short-term resources by Reserve Bank of India are eligible to issue CP. A corporate would be eligible to issue CP provided subject to certain conditions. All eligible issuers are required to obtain a credit rating for issuance of Commercial Paper from a credit rating agency as may be specified by the Reserve Bank of India from time to time.
 
CPs are issued at a discount to face value, as may be determined mutually by the issuer & investor. They can be issued for maturities between a minimum of 7 days and a maximum up to one year from the date of issue and can be issued in denominations of Rs.5 lakh or multiples thereof. Issuers may buyback the CP, issued by them to the investors, before maturity but not before 30 days from the date of issue.
 
CP may be issued to and held by individuals, banking companies, other corporate bodies registered or incorporated in India and unincorporated bodies and Non-Resident Indians (NRIs). Generally, mutual funds, banks, insurance companies, etc are the dominant investors in the CP market.
 
Secondary market trading takes place through the interbank broking market between institutional participants. OTC trades in CP shall be settled through NSCCL, ICCL and MSEI CCL. The settlement cycle for OTC trades in CP shall either be T+0 or T+1.
 
Clients interested buying/selling CPs may contact our Sales Personnel on 022-66202224/25/28.
 
 
 

Latest News

The CPI-AUGUST
The Consumer Price Index (Combined) inflation for August 2021 printed lower at 5.30% as compared to the reading of 5.59% in the previous month.
--------------------------------------------------
Headline WPI inflation for August 2021
Headline WPI inflation for August 2021 printed at 11.4%, marginally higher than 11.2% recorded in July 2021, due to a surge in prices of primary articles and manufactured products
--------------------------------------------------
IIP growth for July 2021
IIP growth for July 2021 printed at 11.5% as against the reading of 13.6% in June 2021, on a year on year basis.
--------------------------------------------------
Real gross domestic product for Q1FY22
Real gross domestic product for Q1FY22 noted a growth of 20.1% on a year on year basis, largely due to favorable base as GDP contracted by a massive 24.4% in Q1FY21. However, GDP contracted by 16.9% on a quarter on quarter basis and by 9.2% from Q1FY20 levels.
--------------------------------------------------
Third bi-monthly monetary policy for FY22
In the third bi-monthly monetary policy for FY22, the RBI Monetary Policy Committee unanimously decided to maintain status quo on policy rates. MPC continued with the state-based forward guidance. All members, except Prof. Jayanth R. Varma, voted to continue with the accommodative stance as long as necessary to revive growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.
--------------------------------------------------