• Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
99
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
12
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

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