Commercial Paper (CP) refers to a short-term money market instrument issued by a company in the form of a promissory note. CP can be used either as a funding or as a cash management tool. Its proceeds are typically used for financing current assets or inventories, or meeting short-term liabilities. CP is seldom used as a funding vehicle for longer-term obligations.
The introduction of CP in Mauritius is expected to support the development of financial markets. CP will allow issuers to diversify their sources of short-term borrowing while investors will benefit# from a viable additional short-term financial instrument, with market-determined rates of return.
This Guideline governs the issuance of CP in Mauritius. It outlines the minimum requirements that issuers and investors should meet, the procedures to be followed for CP issuance as well as the duties and obligations of all parties involved in the process.
No comments:
Post a Comment