SEBI changes reporting timeline for commercial paper payment obligations

Sebi on Friday changed the timeline for entities with listed commercial papers to report the status of their payment obligations within one working day of the payment due date, bringing it in line with the reporting requirements for non-convertible securities. This move will enhance transparency for stakeholders and ensure timely disclosure by entities.

The LODR (Listing Obligations and Disclosure Requirements) rules mandate entities holding listed non-convertible securities to report the status of their payment obligations (payment of interest or dividend or payment or redemption of principal) within one business day, Sebi said in its circular. Its payment is pending.

Earlier, the rule required issuers of listed commercial papers to submit a certificate confirming payment of their payment obligation within two days of payment.

Sebi said it has amended the rules to align the timelines for reporting to stock exchanges on the status of payment obligations for listed non-convertible securities and listed commercial paper.

The change will apply to entities reporting interest, dividend or redemption of principal.