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Money Market Desk
Overview
Debt Market Instruments
FAQs
Money Market Desk
Debt Market Instruments


The Money Market trades in the following Debt Market Instruments:

Government of India Securities
Treasury Bills
Commercial Papers
Government of India Securities:
 
These are sovereign (credit risk-free) coupon bearing instruments which are issued by the Government of India.

The main features of these bonds are:
These securities have a fixed coupon that is paid on specific dates on half-yearly basis.
Securities are available in wide range of maturity dates, from short dated (less than one year) to long dated (upto twenty years).
Securities are available in primary and secondary market.
High liquidity-securities can be sold in the secondary market at prevailing rates.
Available in physical form or in demat -maintained in Constituents Subsidiary General Ledger (CSGL) a/c with any bank.
Securities held in CSGL a/c will have the convenience of  automatic credit of half yearly interest and the redemption proceeds on due date.
Reasonably good returns.
Treasury Bills:

It is a discounted instrument issued by the Central Government.

The main features of Treasury Bills are:
Sovereign zero risk instruments.
Treasury Bills: Short term, discounted Instruments with a maximum tenor of 364 days.
Available in primary and secondary market.
Issued at a discount to face value i.e., investors will buy the Treasury Bills at discount to face value of Rs.100 and on maturity the  face value of Rs.100 is received by the investor.
No Tax Deduction at Source (TDS)
Convenience of CSGL a/c as in case of Central Govt. securities such as automatic credit of redemption money.
Highly liquid.
Attractive returns.
Commercial Paper:

It represents short term unsecured promissory notes issued by top rated corporates, primary dealers (PDs), satellite dealers (SDs) and the all-India financial institutions (FIs).

The main features of these papers are:
Corporates having tangible net worth of not less than Rs.4 crore and whose borrowal account is classified as Standard Asset by the financing bank/s, are eligible to issue CPs.
All CPs require credit rating from a credit rating agency. Highest rating is P1+ and lowest is P-2 by CRISIL.
CP can be issued for a minimum period of 15 days and a maximum up to one year.
Minimum amount invested by single investor is Rs.5 lacs or multiple thereof.
CPs are issued at a discount to face value.
Issued in demat form. (Compulsory demat from July '01).
Attractive returns.

For more details, write into us at mdesk.bombay@hdfcbank.com
and we will get back to you.

 
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