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Debt Market PPT

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Transcript

  • 1. • • • Class Subject Semester • Date : S.Y B.F.M : Debt Market : III : 23/07/2012 Presented to, Prof. Riya Nathani
  • 2. Group Members and Their Roll Nos.  Divya singh  Navin Jethwani  Chunky Lulla  Hemant Chaudhary  Laveen Paryani  Dinesh Wadhwa  Dinesh Dulani  Laveen wadhwa  Hitesh Kukreja Roll Roll Roll Roll Roll Roll Roll Roll Roll No. No. No. No. No. No. No. No. No. 53 22 54 09 49 51 50 58 55
  • 3. Topics Covered in Debt. Market  Introduction of Debt Market  Structure of Financial Market  Government Securities  Commercial papers  Treasury Bills  Repo  Current News
  • 4. Debt Market Meaning of Debt Market The debt market is any market situation where the trading Debt instruments like: – Bonds – Commercial Papers – Treasury Bills – Government securities take place Who can participate ? –Institutional investors –Government –Traders –Individuals
  • 5. Financial Market Structure Money Market Debt Market Financial Market Capital Market Forex market GSecurities Bonds Central Govt. State Govt.
  • 6. Government Securities Features : • Issued at face value • No default risk as the securities carry sovereign guarantee. • Ample liquidity as the investor can sell the security in the secondary market • No tax deducted at source • Can be held in Demat form
  • 7. Commercial paper  Benefits and intro:  They are negotiable  Raising short term funds.  Introduced 1990 in India  Advantages of commercial paper:  High returns  Easy to raise long term capital  Flexibility
  • 8. Guidelines for commercial paper  Issues of commercial paper  Investment in commercial paper  Denomination  Maturity  Issuing and paying agent
  • 9. Treasury bills INTRODUCTION •Instruments of short term borrowing by – Central Govt. – State Govt. OBJECTIVES: • Issued to raise funds • Meeting expenditure needs • Provide outlet for parking temporary surplus funds by investors. INVESTORS: • Can be purchased by any one (including individuals) • Except State govt. • issued by RBI Maturity : 91 days and 364 days.
  • 10.  Features • Highly liquid • Safe investment • Attractive yield. • RBI sells on auction basis (to bidders quoting above the cut-off price fixed by RBI)  DATED SECURITIES • Instruments tenure is over one year. • Returns on dated securities are based on fixed coupon rates • Considered risk free.
  • 11. • Repurchase agreement (A money Market Instrument) • Short term borrowing and lending • Decreases liquidity in the market when done by RBI Participants in Repo Market     Banks Insurance companies registered with IRDA Mutual Fund registered with SEBI NBFC registered with RBI
  • 12. END