COMPARATIVE TABLE ON IMPORTANT MONEY MARKET INSTRUMENTS

Sl.No Salient Futures Certificate of Deposits Commercial Paper T-Bills Govt. Securities
Corporate, PDs and All India Financial
Institutions, with a Rating of Minimum
All scheduled commercial Banks
A-3 from SEBI registered CRA and net Central, State and Semi-
(except RRBs & Local Area Banks) RBI on behalf of the Central
1 Issuers worth, as per the latest audited balance Government
and select All-India Financial Governments
sheet, not less than Rs. 4 crore, having authorities/agencies
Institutions(FIs)
a working capital limit with a Bank,
which is a standard asset
Individuals, Corporates, Trusts, Banks, Financial Institutions, NBFC, Individuals, Banks,
Individuals, Banks, Corporates, FIIs,
2 Subscribers Funds, Associations, NRIs (on non- Corporations, FIIs, NRIs (on non- Corporates, NRIs, Firms,
NRIs (on non-repatriable basis)
repatriable basis) repatriable basis) NBFCs, QIBs
To meet short term requirements of govt.
Assured availability of Funds & To raise short term funds from public at Monetary and Fiscal Policy
3 Purpose of issue & to regulate the money supply in the
control over the cost of funds cheaper rate Requirements
economy
Minimum auction for Rs 500 crore for
each issue for 91 days T-bill on every
Amount of Issue:
Rs. 1,00,000 Rs. 5,00,000 Wednesday while Rs. 1000 crore for Rs. 10,000
4 Minimum
364 days T.bil on every alternative
Wednesday
In Multiple of Rs. 1,00,000 Rs. 5,00,000 --- Rs. 10,000
Period: Minimum 7 days (FIs for not less than 1 year) 7 days 14 days 2 years
5 365 days(FIs for not more than 3 364 days (presently T.B of 91 days and
Period: Maximum 365 days 20 years
years) 364 days are traded)
6 Mode of Issue Issued directly to public Through Issuing and Paying Agent Through Auctions Auction/ Public Issue
Bonds with a coupon rate &
7 Nature of Issue At a discount to the face value At a discount to the face value At a discount to the face value
at a discount to face value
8 Form of Issue Physical / Demat form Physical / Demat form Demat form Physical/Demat form
Nature of
9 Usance promissory note Usance promissory note Usance promissory note Bonds
Instrument
Transferability/
10 Transferable/ Negotiable Transferable/ Negotiable Transferable/ Negotiable Transferable/ Negotiable
Negotiability
11 Stamp Duty Yes Yes Yes Yes
12 Lock -in Period No No No No
13 Liquidity High High Very High High
Settlement on
14 Directly with the bank Issuing and Paying Agent SGL Account SGL Account
Maturity
15 Trading OTC, FIMMDAI OTC, FIMMDAI OTC, NDS-OM,CCIL OTC, NDS-OM,CCIL
15 Regulation RBI RBI RBI RBI

D=F/[1+{(IxN)/100x365)}] D=F/[1+{(IxN)/100x365)}]
16 Discount /Yield Y -

D= Discount; F=Face Value; I= Interest Rate; N= Issuance Period, Y= Yield

OTC- Over The Counter; FIMMDAI-Fixed Income Money Market and Derivatives Association of India; NDS-OM-Negotiated Dealing System- Order Matching;
CCIL-Clearing Corporation of India Ltd.; SGL- Subsidiary General Ledger; QIB-Qualified Institutional Buyers