Commercial Paper Short Term Financing

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Economic interest groupings and partnerships made up solely of joint-stock companies that meet the conditions set forth in point 2;6. The Agence centrale des organismes de sécurité sociale (France’s central social security agency) only for short-term negotiable debt securities;13.

European Union institutions and international organisations;7. The Caisse d'amortissement de la dette sociale (social security debt amortisation fund) instituted by Article 1 of Ordinance 96-50 of 24 January 1996 on the reimbursement of social security debt;8. Associations governed by the Act of 1 July 1901 on the contract of association or by Articles 21 to 79 of the local civil code applicable in the Bas-Rhin, Haut-Rhin and Moselle departments that meet the conditions for the issue of bonds by public offering;10. Regional hospitals, the list of which is established by decree, up to the amount of the overall issuance ceiling established for each of them by the said decree.

213-3 of the Monetary and Financial Code are authorised to issue negotiable debt securities:1.

Credit institutions, investment firms and the Caisse des Dépôts et Consignations, provided that they comply with the relevant conditions laid down by the Minister of the Economy;1a.

Definition: Commercial Paper or CP is defined as a short-term, unsecured money market instrument, issued as a promissory note by big corporations having excellent credit ratings.

As the instrument is not backed by collateral, only large firms with considerable financial strength are authorised to issue the instrument.Since it is an unsecured source of finance, it is regulated by the apex bank of the country.Based on the recommendations of Vaghul Working Group, guidelines have been issued by the Reserve Bank of India (RBI), in the year 1990.Financing companies, provided that they comply with the relevant conditions laid down by the Minister of the Economy and provided that the proceeds from these issues do not consist of redeemable funds from the public within the meaning of Article L. Entities other than those referred to in Article 1 and 1a, provided that they fulfil the legal status, minimum capital and auditing requirements for launching a public offer of financial securities or for their financial securities to be listed on a regulated market and whose equity capital is specified by a decree, or equivalent conditions for entities with their head office abroad.They must belong to one of the following categories:3.Each year, the issuer must provide the Banque de France with an updated version of its financial documentation within forty-five days of the general shareholders’ meeting or the meeting of the body acting in such a capacity, held to approve the financial statements for the previous financial year.As an exception, as part of the first application of the reform relating to negotiable debt securities, this deadline is extended to three months after the general shareholders’ meeting (held to approve the financial statements for the previous financial year) following the entry into force of said reform.Public sector companies if they fulfil the conditions set out in 2;4.Public sector companies without equity capital but which are authorised to launch a public offer;5.In this case, the financial documentation must mention this and provide the same information on the guarantor as that provided on the issuer. All issuers must inform the Banque de France, at least two weeks prior to the first issue, of their intention to enter the market, by submitting to the Banque de France the information memorandum drawn up in accordance with the provisions of Articles D. The Banque de France will upload to its website all or part of the financial documentation submitted by each issuer, at the very least the presentation of the issuing programme, the issuer, and any updates.List of the issuers whose programmes may be guaranteed and the guarantors authorised to issue guarantees on the negotiable debt security market: The issuers of negotiable debt securities referred to in Article L. The Banque de France regularly publishes on its website statistics on the negotiable debt securities issued as part of the issuing programmes under the conditions laid down in the Order referred to in Article D. With respect to redemptions-buybacks, an issuer may purchase and hold the negotiable debt securities it has issued within the limit of 10% of the total outstanding amount of each issuing programme on the condition that it duly informs the Banque de France (Article D. The following are exempt from this requirement:1° credit institutions and investment companies operating in the European Economic Area;2° the Caisse des Dépôts et Consignations;3° issuers whose securities are admitted for trading on a regulated market in the European Economic Area or on a market outside of the European Economic Area that has an equivalent status in the eyes of the European Commission;4° securitisation bodies that issue debt instruments all conferring pari passu rights.

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Comments Commercial Paper Short Term Financing

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