This document discusses treasury products in India, including money market instruments like treasury bills, repo/reverse repo, certificates of deposit, and commercial paper. It also discusses capital market instruments like equity shares, preference shares, and various types of debt securities. The primary market for equity shares involves either a fixed price offer or book building process. Various entities are involved in the money market as players, including the central government, public sector undertakings, insurance companies, and banks. Pure borrowers and lenders as well as entities that are both borrowers and lenders participate in the capital market.

1. UNIT II Treasury Products

2. Treasury Products Money Market Instruments Capital Market Instruments Primary market in Equity Shares: -Fixed Price Offer -Book-Building

3. Players In Money Market Central Government Public Sector Undertaking Insurance Companies Mutual Funds Banks Corporates Others -NBFCs -Provident Funds -Pension Funds -Primary Dealers -Foreign Institutional Investors -Investment Trusts

4. Capital Market: Players Pure Borrowers -Governments -Public Sector undertakings Pure Investors -Insurance Companies -Mutual Funds -NBFCs -Provident Funds -Pension Funds -High Networth Individual -Retail Investors -FIIs

5. Players Who are Both Borrowers & Lenders Commercial Banks Financial Institutions Corporates

6. Money Market Instruments Treasury Bill Repo & Reverse Repo Call Money & Notice Money Certificate of Deposit Commercial Paper Bankers’ Acceptance Commercial Bill

7. Capital Market Instruments: Equity Shares Dividend Bonus Shares Appreciation in Market Value Corporate Action Voting Right Preemptive Right Lower Incidence of Taxation Sponsored ADRs/GDRs

8. Preference Shares: Another Ownership Security Preferential Claim for Dividend & Redemption over Equity Shareholders Dividend not Taxable in the Hands of Investors Convertibility Clause Lack of Secondary Market renders it Unattractive As a Treasury Product

9. Debt Securities As Capital Market Instruments Government Bonds Corporate Bonds Hybrid Bonds/Innovative Bonds/Perpetual Bonds

10. Primary Market in Equity Shares: Rationale for Public Issue Organic Growth Working Capital Merger&Acquisitions Financial Restructuring Exit Route for VC

11. Procedure for Public Issue Appointment of Merchant Banker Application to a Stock Exchange Agreement with the Depository Appointment of Underwriters Appointment of Registrar to the Issue Appointment of Banker to the Issue Appointment of Brokers Obtaining Credit Rating Appointment of an Advertising Agency

12. Book-Building: Features Quantity Assessment through Information Memorandum Price Discovery through Red Herring Prospectus Final Prospectus Post Issue

13. Book-Building: Procedure Merchant Banker As a Lead Book Runner Appointment of Syndicate Members Quantity Assessment Appointment of Underwriters Registrar to the Issue Appointment of a Banker to the Issue & Opening an Escrow Account Determining Cut-off Price and Allotment