T-Bills
The Government of India also issues securities called Treasury Bills or just T-Bills, that have a maturity < 1 year. They are also called Money Market securities as they are of short duration. Day Count convention: Actual/365. No coupon.
Corporate Bonds
Bonds issued by corporations are called corporate bonds. Day Count Convention is: Act/365, Coupon payment: Annual
Types of Bonds
Callable Bonds: These are bonds where the issuer has the right to buy back the bonds. The issuer will exercise if market rates are lower than coupon.
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Bond Markets
A QUALITY E-LEARNING PROGRAM BY WWW.LEARNWITHFLIP.COM Puttable bonds: gives the investor the right to sell the bonds back to the issuer. The investor will exercise if market rates are higher than coupon. Convertible bonds: These are bonds that can be exchanged for specified amounts of common stock, after a certain period of time.
Regulations
Primary market regulation is the responsibility of the RBI. In the secondary market, regulation is divided between the RBI and the Securities and Exchange Board of India (SEBI).
Market participants
Primary Dealers The primary dealers were expected to provide two-way prices on all G-secs, as well as to underwrite issues in the primary market Other participants include PSU Banks, Private sector banks, insurance companies, mutual funds etc.
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