The Securities and Exchange Board of India (SEBI) on September 22, 2022, issued a circular regarding the listing of Commercial Paper by listed InvITs. According to the Reserve Bank Commercial Paper Directions, 2017 dated August 10, 2022 InvIT having a net worth of INR 100 Crore or higher are eligible to issue commercial paper.
It is stated that InvITs may issue listed commercial papers subject to the following:
o InvITs shall abide by the guidelines prescribed by the Reserve Bank of India for issuances of commercial papers.
o InvITs shall abide by the conditions of listing norms prescribed by SEBI under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 20,21, and circulars issued thereunder.
o The issuance of listed CPs shall be within the overall debt limit permitted under SEBI (Infrastructure Investment Trusts) Regulations, 2014
[Circular No. SEBI/HO/DDHS/DDHS_Div3/P/CIR/2022/ 123]
