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What is the process for issuing commercial papers?
Every company issuing the CP should appoint a scheduled bank as the issuing and paying agent. The authorized authority is required to satisfy itself about the satisfactory credit rating. A resolution is required to be passed by the Board of Directors approving the issue and authorizing the official to execute the relevant documents, as per RBI norms. It should also verify the documents submitted by the issuing company and issue a certificate that the documents are in order. The issuer should disclose to its potential investors its financial position. The issue has to be completed within two weeks of opening.
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