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FAQs |
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Who can Buy? |
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The following can transact in the Debt Market:
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Individuals |
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Provident Funds / Gratuity Funds / Superannuation Funds |
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Corporates |
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Insurance Companies |
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Non - Resident Indians |
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Overseas Corporate Bodies predominantly owned by NRIs and Foreign Institutional Investors registered with SEBI and approved by RBI |
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What can I Buy? |
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Money Market instruments which are available for sale would include:
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Government Securities: Zero risk, fixed coupon bonds with semi annual interest payments issued by the Govt. of India available in all maturities. Most liquid amongst all Money Market instruments. |
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Treasury Bills: Short term, discounted Instruments with a maximum tenor of 364 day. Available by way of auction every week and also in the secondary markets as per availability. The Reserve Bank of India auctions 91 day Treasury Bills every week and 364 day Treasury Bills every alternate week.
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Corporates |
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Insurance Companies |
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Non - Resident Indians |
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Overseas Corporate Bodies predominantly owned by NRIs and Foreign Institutional Investors registered with SEBI and approved by RBI |
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How do I Buy? |
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How can an individual or company buy / sell GOI securities / Treasury Bills?
Government Securities / Treasury Bills can be bought in the following manner:
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Primary Market: by bidding at periodic auctions conducted by the Reserve Bank of India (RBI) |
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Secondary Market: From any other seller in the market holding the said security at market. |
The most convenient mode of transacting in GOI Securities / Treasury Bills is by opening Constituent SGL account with a Bank / NSDL. A Constituent SGL account is very much like a depository account by means of which a person can engage in paperless transaction in GOI Securities and Treasury Bills. HDFC BANK offers Constituent SGL facility. For opening of the SGL account please contact the FIG.
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How to know the market prices and the yields earned? |
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| Rates on debt instruments can be obtained from banks that are active in trading these instruments. Brokers who deal in debt instruments can also provide these rates. HDFC Bank Money Market Desk offers Govt. Security prices online. However, since all other types of debt instruments are not traded regularly, the quotes available may be very indicative. |
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What next? |
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| The security bought can be held to maturity giving interest inflows on the respective interest payment dates and redemption proceeds on maturity. The interest accruals and Redemption proceeds for Gsecs and Treasury Bills will be credited directly to the savings / current account of the SGL account holder. If the individual wishes to trade in the liquid instruments like Government Securities / Treasury Bills, HDFC BANK LTD. Money Market Desk also can give the bids to purchase the securities from you. The bids will be related to the interbank prices and the lot size to be sold. |
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For more details, write into us at mdesk.bombay@hdfcbank.com
and we will get back to you.
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