On January 3, 2024, the Reserve Bank of India issued a revised set of guidelines titled "Master Direction – Reserve Bank of India (Commercial Paper and Non-Convertible Debentures of original or initial maturity up to one year) Directions, 2024." The directives outline reporting requirements for various aspects of Commercial Papers (CPs) and Non-Convertible Debentures (NCDs) in the financial markets:
- Primary issuances reporting:
- Issuing and Paying Agents (IPA) are required to report details of all CPs and NCDs issuances in the primary markets on the F-TRAC platform by 5:30 PM on the day of issuance.
- Secondary market transactions reporting:
- All secondary market transactions of CPs and NCDs, whether executed in the Over-the-Counter (OTC) market or on recognized stock exchanges, must be reported with a timestamp within 15 minutes of execution on the F-TRAC platform by each counterparty involved.
- Buybacks reporting:
- IPAs are mandated to report details of CP and NCD buybacks on the F -TRAC platform by 5:30 PM on the buyback date.
- Default reporting:
- Instances of default and repayment of defaulted obligations are to be reported by IPAs on the F-TRAC platform by 5:30 PM on the day of default or the day of repayment.
- Depository reporting:
- Depositories are required to report details of CPs and NCDs held in dematerialized form at fortnightly intervals or as directed by the RBI.
- Debenture trustee reporting:
- Debenture trustees must report details of the outstanding amount of NCDs and particulars of default in repayment at quarterly intervals, within 15 days from the end of the quarter, through the prescribed format to the RBI via email.
The guidelines also delineate the roles and responsibilities of issuing and paying agents, debenture trustees, and credit rating agencies concerning operations in CP and NCD markets.
Originally published 27 March 2024
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