The Securities and Exchange Board of India on 22nd September 2022, notified that the Infrastructure Investment Trust InvIT and Real Estate Investment Trust (REIT) having net worth of at least Rs 100 crore are eligible to issue commercial paper, However it is subjected to the following conditions:
- InvITs and REIT shall abide by the guidelines prescribed by Reserve Bank of India for issuances of commercial papers.
2. InvITs and REIT shall abide by the conditions of listing norms prescribed by SEBI under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 and circulars issued thereunder.
3. The issuance of listed CPs shall be within the overall debt limit permitted under SEBI (Infrastructure Investment Trusts) Regulations, 2014. Commercial Paper or CP in market parlance refers to a short-term debt instrument issued by companies to garner funds generally for a time period up to one year.