• 1. What is a Commercial Paper?

    Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. CP is a privately placed instrument, with a view to enable highly rated corporate borrowers to diversify their sources of short-term borrowings and to provide an additional instrument to investors.

    CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.

    CP can be issued in denominations of Rs.5 lakh or multiples thereof. Amount invested by a single investor should not be less than Rs.5 lakh (face value).

  • 2. Who is eligible to issue Commercial Paper?

    Corporates, Primary Dealers and all-India financial institutions (FIs) have been permitted to raise short-term resources under the umbrella limit fixed by the Reserve Bank of India (RBI).

    Eligibility to issue CP are-
    (a) The tangible net worth of the company, as per the latest audited balance sheet, is not less than Rs.4 crore
    (b) The company has been sanctioned working capital limit by bank/s or FIs
    (c) The borrowal account of the company is classified as a Standard Asset by the financing bank/institution.

  • 3. Who can invest in Commercial Paper?

    CP may be issued to and held by individuals, banking companies, other corporate bodies (registered or incorporated in India) and unincorporated bodies, Non-Resident Indians and Foreign Institutional Investors (FIIs).

  • 4. What are the benefits for the investors?

    # Transparency in yield negotiation
    # Access for smaller investors to quality paper
    # Direct dealing with the Issuer
    # Quick allocation result
    # Convenient online process

  • 5. What are the benefits to the client (Issuer)?

    Competitive bidding and greater participation ensures better yield discovery and therefore greater savings for the client

    Systematic process with multi stage bidding methodology, ensures total allocation of CP amount

  • 6. What is the role played by mjunction in the whole process?

    # Conduct e-auction of the Commercial Paper or Bond to ensure the client gets the best price possible
    # Market making for the Commercial Paper or Bond issue on behalf of client
    # Registration of the Investors and arrangers with mjunction pre auction
    # Generation of user ID and password and thereby providing it to the respective investors
    # Communication to be send to investors over mail for winning any allocation quantity post auction
    # Generation of auction report for all the stages of auction and forwarding it to the client

  • 7. How to get registered with mjunction?

    Interested investors should register with Mjunction to participate in the eAuction process. Registration process is as follows:

    i. Investors need to log onto the financejunction website (financejunction.in)
    ii. Download SOI (Statement of Interest) Form, fill it up and send it back to MJ along with necessary KYC documents
    iii. After receiving completed SOI Form, user ID and password will be provided to the investors
    iv. Investors can log into their respective user accounts and change/modify their account details and participate in the auctions accordingly

  • 8. Whom do I contact in case of queries?

    In case of further queries please contact -
    Mr. Sourav Bhowmick
    Email: sourav.bhowmick@mjunction.in
    Landphone : 91 33 66106421
    Handphone : 9163348276
    Fax : 91 66106187 / 22883536
    Or write in to us at Contact Us.