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Standard Chartered Capital Ltd.
Formerly Standard Chartered Investments & Loans (India) Ltd.

Commercial Paper (CP), an unsecured money market instrument issued in the form of a promissory note, was introduced in India in 1990 with a view to enabling highly rated corporate borrowers to diversify their sources of short-term borrowings and provide an additional instrument to the investors. The debt is usually issued at a discount, reflecting prevailing market interest rates.

Commercial Paper is issued by Corporates, primary dealers (PDs) and all-India financial institutions (FIs) that have been permitted to raise short-term resources under the umbrella limit fixed by the Reserve Bank of India. Since it is not backed by collateral, only companies with minimum credit rating of P-2 will be able to sell their commercial paper at a reasonable price. Maturities on commercial paper ranges between minimum of 7 days and a maximum of up to one year from the date of issue. CPís are issued in denominations of Rs.5 lakh or multiples thereof. For more detail, please refer to RBI circular no. IDMD.DOD.14 /11.08.36/2010-11 dated 1st July, 2010.

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