NSDL digitizes the Commercial Paper issuance process

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Mumbai: National Securities Depository Ltd. (NSDL) has successfully completed the first digitization of the Commercial Paper (CP) Issuance process in India.

For this process NSDL collaborated with YES Bank as an issuing and paying agent (IPA), Centrum Microcredit Ltd. as an issuer, NSDL Database Management Limited as a registrar and transfer (R&T) agent and Northern Arc Investments as an investor.

The entire Commercial Paper issuance process from start to end has been electronically. All the participants viz. issuer, investor, IPA, RTA and NSDL completed the process in a digitized way.

Currently the CP issuance process involves various documents like ISIN request application, letter of offer, deal confirmation note, IPA certificates, corporate action etc. These documents are being prepared, signed and delivered in physical mode by issuer, investors, IPAs and R&T agent, requiring considerable time and efforts.

The same process has been transformed into electronic mode through NSDL’s platform, where the same documents are digitally signed, submitted and processed.

NSDL has always been in the forefront of digitization of capital markets in India, according to GV Nageswara Rao, MD and CEO, NSDL.

“Our first step towards digitization of Commercial paper issuance process shows our effort towards the path of innovation and modernization to bring more transparency, more convenience to market players while focusing on enhancing overall safety and security,” said Rao.

“We have completed the country’s first entire Commercial Paper issuance process from start to end electronically via NSDL platform. We are overwhelmed by the response received from the market players on the NSDL move towards the transformation of cumbersome paper to a seamless electronic process. Thereby enhancing the efficiency and timeliness of the entire commercial paper issuance process,” informed Rao.

“We are pleased to have participated in this industry-first end-to-end digitally managed Commercial Paper issuance on the NSDL platform,” said Ajay Rajan, Global Head – Transaction Banking Group, YES BANK.

“Under the current circumstances, the business world is adapting to embracing technology and digitization in every aspect. Centrum Microcredit is pleased to be associated with NSDL in an end to end digital issuance process of Commercial Paper. This has eased out the entire paper-based process and reduced execution time significantly,” said Prashant Thakker- CEO, Centrum Microcredit Limited said,

“NSDL’s Digital platform has enabled real time integration among the Issuer, IPA, RTA and Investor for Commercial Paper Issuance. The operational ease by transiting from paper to digital process will help deepen access to the short term securities market, primarily dominated by A1+ issuers currently,” said Ravi Vukkadala, CEO, Northern Arc Investments.

NSDL’s workflow-based platform facilitates issuer, investors, IPAs and R&T Agent to undertake CP issuance process online in efficient manner and in accordance with directions and operating guidelines issued by RBI and FIMMDA.

The whole process is secured with a digital signature certificate (DSC) by all participants (i.e. Issuer, Investor, RTA, IPA and NSDL). The platform will enhance the efficiency and timeliness of the entire issuance process thereby providing considerable benefit to all the participants.

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