The issuer may attract potential purchasers independently or through a professional securities market participant.
Commercial papers are placed through a private offering among a predetermined pool of potential investors. The number of such investors, excluding qualified investors, shall not exceed 150.
The authorised governing body of the issuer shall adopt one of the following decisions:
On the placement of commercial papers, in case of the issue registration (not under a program);
On the approval of a commercial paper program — in case of a commercial paper program registration.
To have a commercial paper issuer registered and placed on the market, a potential issuer must enter into the following agreements with NSD:
A services agreement for the assignment of an identification number to the commercial paper issue / commercial paper program, by joining the agreement: statement of accession to the rules.
A treasury securities account agreement (if applicable).
An electronic data interchange agreement by accession to the agreement: application to join the Electronic Data Interchange Agreement.
To enter into agreement, it is also necessary to prepare and submit to NSD a set of documents (see the List of Documents Submitted by Legal Entities to NSD – Item II).
The agreements must be submitted in two copies signed by the issuer without numbering and dating (in case of submitting documents on paper media) or through NSD EDI.
To register a commercial paper program or a commercial paper issue, the issuer shall submit to NSD a complete set of documents* in accordance with the list specified in the Rules for the Provision of Services by NSD on Registration of Commercial Paper Issues (Section 6).
After the issuer receives the issue registration notice from NSD, it makes a decision on the commencement date of placement.
To place commercial papers, the issuer must prepare and submit to NSD a set of documents prescribed by the Guidelines on the Procedure for Interaction between NSD and Issuers, which is an annex to the Issuance Account Agreement.
The set of documents shall be submitted by the issuer to NSD within five working days prior to the placement commencement date (for bond issuance) or two working days prior to the placement commencement date (for a bond issue under the program).
Starting from the placement commencement date and up to the placement end date, the issuer directs to NSD a depository instruction (Form MF010) for transfer of commercial papers from its issuance account to the prospective investor’s securities account.
For amendment of commercial paper issuance documents (except amendment of part of the Bondholder's Representative) the issuer is required to submit to NSD a set of documents* in accordance with the list of documents prescribed by the Rules for the Provision of Services by NSD on Registration of Commercial Bond Issues (Section 7).