Curbs on IL&FS Financial's access to Commercial Paper till Feb 2019 Noor Arora
IL&FS Financial Services, IL&FS group’s lending arm, has been barred from tapping the commercial paper (CP) market till the end of February 2019 as it failed to repay maturing CPs on the due date. Commercial Papers (CP) that were due on August 28, 2018 and August 30, 2018 could not be repaid on the due date. These were settled in full on August 31, 2018 by the Company. In compliance with the Reserve Bank Commercial Paper Directions, 2017, the Company will not access CP market up to February 28, 2019, IL&FS informed the Bombay Stock Exchange. Meanwhile, according to rating agency Icra, the company had said that the requisite funds had been earmarked for meeting the CP obligations falling due on the above-mentioned redemption dates. These funds could not be released from the bank to the relevant mutual fund within the prescribed banking time owing to certain technical reasons.
ARTICLE SOURCE: BS