Debt Market
Presented By: Akshay Virkar
Content
Introduction
Advantages Of Debt Market
Indian Debt Market Structure
Market segment
Participants
Debt Market Instruments
Market share of Govt.Securities
Current trend
Conclusion
Introduction
• A market where fixed income securities are issued and trade is called Debt Market
• Govt. needs large amount of money to carry out many welfare activities
• Govt. raise money by issuing govt. securities (.i.e. Debt Securities)
• Debt Market is vast in nature
• The turnover of Debt Market is greater than Equity Market in all over the world
• Total size of Indian Debt market is in the rang of $91 bn to $100 bn i.e. approximately 30% of Indian GDP
Advantages
Low risk
Liquidity
Security
Returns
Economic development
Advantages
Indian Debt Market Structure
RegulatorsSEBI, RBI
Market segment
The Sovereign Issuer
The Public Sector
The Private Sector
Central Govt.
State Govt.
Issuers Instruments
GOI dated securities, T-Bills,
state Govt.securities index bonds, Zero compound bonds
Investors
RBI
DFI
Govt. Agencies & State Govt. Bodies
PSU
Commercial Bank, DFI
Govt. bonds, Debentures
PSU bond, Debentures, CP
CD, Debentures, Bonds
Banks
Pension Funds
FII
Corporates
Individuals
Provident Funds
Insurance companies,
Trusts, Mutual Funds
Corporate
Pvt. Sectors Banks
Bonds, Debentures, CP
Bonds, Debentures, CD &
CP
Market Segment
Market Segment
Govt. Securities
Public Sector Unit Bond
Corporate Securities
ParticipantsCentral & State Govt.
RBI
Primary Dealer
Public Sector Undertaking
Banks
Mutual Funds
Foreign Institutional Investors
Charitable Institutes & Trusts
Instruments• Bond
• Debenture
Central Govt. Securities• T-Bill
• Call Money
• CD
• CP
Share of market participants in Govt.Securities in India (June 12)
Banking SectorPrimary DealersInsurance ConpaniesMutual FundsCorporatesFIIsProvident FundsRBIOthers
47.3%
0.1%
21.2%
0.3%
1.7%
0.9%
7.3%
17.6%
3.6%
Source : RBI Website
Secondary Market For Debt Market
Trading Platform
Trading System
Trading Settlement
Clearing House
1.00 2.00 3.00 4.00 5.005.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50 Yield Curve of Oct.(12)Yi
eld
(%)
Trading Volume (‘000)
Source : RBI Website
Conclusion
Now a days the trading volume of debt market has increased which results into low yield of the bond.
Source
• Financial Services by Dipak Abhyankar
• Debt Market by Gupta – Bhandarkar
• http://en.wikipedia.org/wiki/Bond_market
• http://www.rbi.org.in
Thank Y u…!!!
Top Related