Capital markets regulator Sebi on Thursday allowed emerging investment vehicles, Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), to issue commercial papers.
This is subject to certain conditions, the Securities and Exchange Board of India (Sebi) said in two separate circulars.
The move came after Reserve Bank Commercial Paper Directions last month indicated that InvIT and REIT having net worth of at least Rs 100 crore are eligible to issue commercial paper.
The capital markets regulator said that REITs and InvITs may issue listed commercial papers. This is subject to certain conditions, including, REITs and InvITs need to abide by the guidelines prescribed by Reserve Bank of India (RBI) for issuances of commercial papers and follow the conditions of listing norms prescribed by Sebi.
The issuance of listed CPs should be within the overall debt limit permitted under the REITs and InvITs rules, Sebi said.
Commercial Paper or CP in market parlance refe
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