Money Market is regulated by R.B.I in India and instrument having maturity less than one year usually traded in money markets
Major Players in Money Market
1. RBI
2. Central Government
3. State Governments
4. Banks
5. Financial Institutions
6. Micro Finance Institutions
7. Foreign Institutional Investors (FII)
8. Mutual Funds
Money Market Instruments
1. Treasury Bills
2. Commercial Papers
3. Certificate of Deposit
4. Bankers Acceptance
5. Repurchase Agreement
1. Treasury Bills
Treasury Bills are also know as T-Bills. This is one of safest instrument to invest .Tbills are issued by RBI backed by government security. RBI issue treasury bills on the behalf of central government to meet the short term liquidity needs of central
government bills are issued at a discount to face value, on maturity face value is paid to holder.
At present, the Government of India issues three types of treasury bills through auctions, for 91-day, 182-day and 364-day. Treasury bills are available for a minimum amount of Rs.25,000 and in multiples of Rs.25,000.