SEBI Tightens Reporting Timelines for Commercial Paper Payments: What It Means for Transparency and Timely Disclosures

On Friday, SEBI announced changes to the timeline for companies with listed commercial papers to report the status of their payment obligations. Now, these companies must report within one working day after the payment due date. This aligns the reporting requirements for commercial papers with those for non-convertible securities, helping improve transparency and ensuring companies make timely disclosures.

According to SEBI’s circular, the LODR (Listing Obligations and Disclosure Requirements) rules already require companies with listed non-convertible securities to report the status of payments, such as interest, dividends, or principal repayments, within one working day of the payment due date.

Previously, companies issuing listed commercial papers had two days to submit a certificate confirming they had met their payment obligations. SEBI has now changed this rule to match the reporting timeline for both non-convertible securities and commercial papers.

This change applies to entities reporting payments related to interest, dividends, or principal redemptions.