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ASSIGNMENT ON
To promote secondary market in short term money market instruments i.e. to be an active trader in money market instruments rather than a mere repository, and thereby, impart improved liquidity to short term money market instruments.
To play an important role as a lender, borrower or broker in the Inter-Bank call Money Market. To promote and support company funds, trusts and other organization for development of short term money market. To advise government, banks And financial institutions in evolving schemes for growth and development of money market. It mobilizes funds/resources from Commercial or Cooperative banks, FI and Corporate Entities which are pooled and lend the money market. Help the corporate entities, banks and FI to raise shirt term money and invest short term surplus. It stabilize the call and short term deposit rate through larger turnover. It extend repos, buy back facility to 14 days to banks and FI In money market instruments. Two regular quotes Bid and offer in money market instruments provided by DHFI serve as a base to broaden the secondary market and give an assured liquidity to the instruments.
Conclusion
With own reference and support from RBI in refinance facility and broad based money instruments, DFHI is poised for continued sustained growth and more effective role to fulfill the basic objective of the money market i.e to facilitate smoothening of short term liquidity.