Financial Market Framework
📊 High-Yield Data & Statistical Fact Sheet
| T-Bills (Treasury Bills) | - Issued only by Central Govt (not States) at a discount and redeemed at face value. Tenures: 91-day, 182-day, and 364-day. |
| Cash Management Bills (CMBs) | - Non-standardized short-term debt issued for temporary cash mismatches (tenure <91 days). |
| Certificate of Deposit (CD) | - Issued by scheduled commercial banks (excl. RRBs/Co-ops). Min denomination: ₹1 Lakh (7 days to 1 year). |
| Commercial Paper (CP) | - Unsecured short-term note by top-rated corporates. Min denomination: ₹5 Lakh. |
| Normal WMA | - Collateral-free advance provided by RBI to government at Repo Rate. |
| Special WMA | - Collateralized against G-Secs at SDF Rate (1.0% below Repo Rate). |
| Overdraft (OD) | - Permitted beyond WMA limits at Repo Rate + 2% (max 14 consecutive working days). |
| Sovereign Gold Bonds (SGB) | - Min 1g, max 4kg/year. 8-year tenure (exit after 5th year). Pays 2.5% annual interest. Capital gains on maturity 100% tax exempt for individuals. |
1. STRUTTING MONEY AND GOVERNMENT CAPITAL MARKETS
| Money Market Regulation | - Short-term market ($\le 1$ year) regulated by RBI. |
| Capital Market Regulation | - Long-term market ($>1$ year) regulated by SEBI. |
| T+1 Settlement | - All listed equities in India settle within 24 hours ($T+1$). |
| Central G-Secs | - Short-term T-Bills & long-term dated securities (up to 40 years). |
| State Development Loans (SDLs) | - Dated securities issued by State Governments via RBI auctions (slightly higher yield than G-Secs). |
| Inflation-Indexed Bonds (IIBs) | - Protects principal & interest payouts against inflation. SLR eligible. |
| Masala Bonds | - Rupee-denominated debt issued overseas. UPSC Rule: Currency risk is 100% borne by foreign lender. |
| Green Bonds | - Proceeds earmarked exclusively for climate & environmental projects. |
2. INVESTMENT TRUSTS, DERIVATIVES & GLOBAL FINANCE
| REITs (Real Estate Investment Trusts) | - Pooled funds investing in revenue-generating commercial real estate. |
| InvITs (Infrastructure Investment Trusts) | - Pooled funds investing in roads, power transmission, solar parks. |
| Forward Contract | - Customized Over-The-Counter (OTC) contract between two private parties. |
| Futures Contract | - Standardized contract traded on a regulated exchange (BSE/NSE). |
| Option Contract | - Grants Call option (right to buy) or Put option (right to sell) without obligation. |
| Swap Contract | - Agreement to exchange cash flow streams (e.g. Interest Rate Swaps, Currency Swaps). |
| Participatory Notes (P-Notes) | - Offshore Derivative Instruments (ODIs) issued by registered FPIs to overseas investors seeking exposure to Indian equities without direct SEBI registration. |
| GIFT City IFSCA | - International Financial Services Centres Authority (IFSCA) acts as a unified single-window regulator for GIFT City Gujarat. |