Debt Market Instruments

The HDFC Bank Money Market Desk helps you balance risk, returns and liquidity on your fund with a variety of debt instruments. These include government securities, treasury bills or T-Bills and commercial paper.

Based on your liquidity needs and risk appetite you can choose any of these security types:

Government of India Securities

These are sovereign-backed (credit risk-free) coupon bearing instruments which are issued by the Government of India. The main features of these bonds are:

• Fixed coupon paid on specific dates on half-yearly basis
• Wide range of maturity dates, from short-dated (less than one year) to long-dated (up to twenty years)
• Available in the primary and secondary markets
• Liquid securities can be sold in the secondary market at prevailing rates
• Available in physical form and demat which can be held in a Constituents Subsidiary General Ledger (CSGL) account with any bank
• If you hold your securities in a CGSL account, get automatic credit of half-yearly interest and the redemption proceeds on due date.
• Enjoy reasonably good returns

Treasury Bills

T-Bills are instruments issued at a discount to the face value by the Central Government. The main features of Treasury Bills are:

• Sovereign-backed zero-risk instruments
• Short term, discounted Instruments with a maximum tenure of 364 days
• Available in the primary and secondary markets
• Issued at a discount to face value – for example, if a T-Bill has a face value of Rs 100, it is issued at a discount; you get the face value on maturity.
• No Tax Deduction at Source (TDS)
• If you hold your securities in a CGSL account, get automatic credit of half-yearly interest and the redemption proceeds on due date.
• Highly liquid
• Enjoy attractive returns.

Commercial Paper

These are short-term unsecured promissory notes issued by leading companies, primary dealers(PDs), satellite dealers(SDs) and all-India financial institutions(FIs). The main features of these papers are:
 

• Corporates with tangible net worth of not less than Rs 4 crore and whose borrowal account is classified as Standard Asset by financing banks, are eligible to issue CPs
• All CPs must have a credit rating. The highest rating is P1+ and lowest is P-2 by CRISIL.
• Minimum period of 15 days and a maximum up to one year.
• Minimum amount of investment is Rs 5 lakh or multiples thereof
• Issued at a discount to face value.
• Compulsory demat
• Enjoy attractive returns

For more details, write to us at mmdesk.bombay@hdfcbank.com