Current Affairs - November, 2019

Latest Current Affairs November, 2019 with Current Affairs, news summary on current events of National and International importance of November, 2019 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

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Aditya Birla Finance becomes first company to list commercial papers on stock exchanges

Aditya Birla Finance Ltd (ABFL), the Non-Banking Financial Company (NBFC) arm of Aditya Birla Capital, has now become the first company to list its commercial papers (CPs) on stock exchanges. The move comes after stock exchanges- the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), came out with a framework for listing of commercial papers (CPs), in a bid to broaden investors’ participation in such securities.

Key Highlights

Aditya Birla Finance is first company to list its commercial paper with value date of 28 November 2019 and maturity date on 7 February 2020. ABFL is a well-diversified NBFC with a long-term credit rating of AAA (stable) from both ICRA as well as India Ratings.

Listing of commercial papers is expected to lead to an efficient transmission of information regarding corporate borrowings and liquidity positions to market participants. It will also contribute effectively towards development of CP market and is expected to have a positive effect on debt capital market.

What is a Commercial paper?

It is an unsecured money market instrument which is issued in form of promissory notes that enables highly rated corporate borrowers to diversify their sources of short-term borrowings. It also provides an additional instrument to investors. CPs can be issued for maturities between a minimum of 7 days and a max of up to 1 year from date of issue. They are usually issued at a discount from face value and reflects prevailing market interest rates.

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Former RBI deputy governor H R Khan to chair Micro-Finance panel

H R Khan, former deputy governor of Reserve Bank of India (RBI) has been appointed as first chairman of steering committee panel on Code for Responsible Lending (CRL) in Micro-Credit. Members of panel include: P Satish of Sa-Dhan, Sonia Krishnankutty of L&T Finance, Harsh Shrivastava of MFIN and Srinivas Bonam of IndusInd Bank among others.

About Code for Responsible Lending (CRL)

It is a self-regulatory step for micro-credit industry making diverse entities such as banks, Non-Banking Financial Company – Micro Finance Institution (NBFC-MFI) and NBFCs, adhere to standards of customer protection.

CRL was launched in September 2019 by Micro-finance Institutions Network (MFIN) and Sa-Dhan, an RBI-recognised association of microfinance institutions (MFIs), along with Finance Industry Development Council, an association of NBFCs. It was envisaged to be guided and supervised by a steering committee representing banks, Small Finance Banks (SFBs), NBFC-MFIs, NBFCs and industry associations under an eminent independent chair.

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