The International Financial Services Centres Authority (IFSCA) on October 17, 2024, issued a circular regarding the Listing of Commercial Paper and Certificates of Deposit on the recognised stock exchanges in the IFSC.
The listing of Commercial Paper and Certificates of Deposit on the recognised stock exchanges in the IFSC shall be in accordance with the requirements specified in this circular.
The following has been stated:
• An issuer meeting the eligibility criteria provided under Chapter II of the IFSCA (Listing) Regulations, 2024 shall be eligible to list commercial paper (“CP”) on a recognised stock exchange in the IFSC: Provided that an issuer being a person resident in India is not eligible to issue a CP in terms of the framework on ‘External Commercial Borrowings’ specified by Reserve Bank of India under the provisions of the Foreign Exchange Management Act, 1999.
• There are four conditions that have been specified in this circular i.e., Depository, Maturity, Currency and Other conditions.
• The issuer may issue a CP to a person resident in India or to a person resident outside India: Provided that such issuance shall be in compliance with the applicable provisions of the Foreign Exchange Management Act, 1999 and Rules and Regulations made thereunder.
• The offer document or information memorandum, as applicable, shall contain all material disclosures which are true, correct and adequate to enable the investors to take an informed investment decision.
• The issuer having outstanding listed CP shall disclose the audited financial statements for the full financial year to the recognised stock exchange(s) immediately after the approval of its board of directors, but in any event not later than three months of the end of financial year: Explanation: The issuer shall prepare its financial statements in accordance with IFRS or US GAAP or Ind AS or other accounting standards as applicable in its home jurisdiction: Provided that an issuer preparing financial statements as per the accounting standards of its home jurisdiction (other than IFRS, US GAAP and Ind AS) shall be required to reconcile the same with IFRS.
[Circular No. IFSCA-PLNP/53/2024-Capital Markets]
