FINACIAL SERVICES

COMMERCIAL PAPER:

Commercial paper: Issuers:all-India financial institutions (FIs) that have been permitted to raise
short-term resources under umbrella limit fixed by RBI were permitted to issue CP since October 10,
2000.

Commercial Paper: Maturity period: Subsequently, the minimum maturity period had been reduced
from time to time and since May 25, 1998, it was reduced to 15 days. Presently, CP can be issued for
maturity period between a minimum of 15 days and a maximum upto one year from the date of
issue.

Commercial Paper: Oil majors Reliance Industries, IndianOil, HPCLNSE 4.24 % and BPCLNSE 6.32 %
are on a debt-raising spree and have raised Rs 78,000 crore in short-term debt using commercial
papers (CPs) in nine weeks to pay for costly crude purchased before oil prices crashed, while sales
revenue has fallen drastically during the lockdown.

Commercial coal auctions to start on Jun 18 : The government will start auctions will auction of coal
mines for commercial mining purposes on June 18 through a virtual event to be attended by Prime
Minister Narendra Modi.

TREASURY BILLS:

Treasury Bills: are a short-term financial instrument that is issued by the US Treasury with maturity
periods ranging from a few days up to 52 weeks (one year)

Treasury Bills are issued only by the central government in India. The State governments do not issue
any treasury bills. Interest on the treasury bills is determined by market forces

They are thus useful in managing short-term liquidity. At present, the Government of India issues
four types of treasury bills, namely, 14-day, 91-day, 182-day and 364-day. T-bills are available for a
minimum amount of Rs. 25,000 and in multiples of Rs

The Treasury Department is launching a 20-year bond later this month in a $20 billion auction.
Government debt has been piling up during the coronavirus crisis, and the latest move is an effort to
stretch out duration. The national debt is just shy of $25 trillion, escalated by efforts to get the
economy through the pandemic.

CERTIFICATE OF DEPOSIT

Both NSE and BSE facilitates trading in a certificate of deposits for retail investors. Banks can issue
CDs for 7 days up to 1-year duration. While financial institutions can issue for 1 year and up to 3
years of maturity. Generally, all issuers need to maintain additional CRR and SLR on the issue price of
the CDs.

Certificates of Deposit are money market instruments and their maturity period is between seven
days to one year for commercial banks. For Financial Institutions, the maturity is not less than a year
and not more than three years

Certificate of Deposit in India. Regulated by the Reserve Bank of India, a Certificate of Deposit is a
type of money market instrument issued against the funds deposited by an investor with a bank in a
dematerialized form for a specific period of time.
For five-year CDs, he predicts that the national average yield will move up to 1.22 percent APY, with
the top nationally available accounts for the term paying 2.45 percent APY. Geller believes we'll see
short-term CD yields in particular increasing, especially for accounts maturing in three to six months

CALL MONEY MARKET

Participants in the call money market are banks and related entities specified by the RBI. Scheduled
commercial banks (excluding RRBs), co-operative banks (other than Land Development Banks) and
Primary Dealers (PDs), are permitted to participate in call/notice money market both as borrowers
and lenders

Participants in the call money market are banks and related entities specified by the RBI. Scheduled
commercial banks (excluding RRBs), co-operative banks (other than Land Development Banks) and
Primary Dealers (PDs), are permitted to participate in call/notice money market both as borrowers
and lenders

Money market instruments are those instruments, which have a maturity period of less than one
year. The most active part of the money market is the market for overnight call and term money
between banks and institutions and repo transactions. Call Money / Repo are very short-term
Money Market products

Mutual funds asset rises to all-time high of Rs17.37 tn in Jan The industry, comprising 43 active
players, had an average assets under management (AUM) of over Rs 16.46 lakh crore at December-
end, the latest data of the Association of Mutual Funds in India (AMFI) showed.