Interest Rate Derivatives, Bond Market and T Bills Market in India

Presented by :Ravi Vasava (11143) Museb Mansuri (11168) Naren Musal (11169) Suhag Prajapati (11176) Jayvant Rathod (11179)

Interest Rate Derivatives

Introduction Hedging Instrument Methodology for Interest rate Derivative Interest rate derivative work on a same principle. - Speculation - Arbitrage - Hedgeing

Interest Rate Derivatives

Trading of interest rate derivative procedure Contract Period Expiry Day Base price and operating ranges

Interest Rate Derivatives

Clearing and Settlement procedure of Interest rate Derivative Settlement Procedure and Settlement price. Daily Settlement Price Final settlement price for mark to market settlement of interest rate future contracts. Settlement value in respect of notional T-bills Zero Coupon yield curve (ZCYC)

Interest Rate Derivatives

REFERENCES 1. www.nseindia.com. 2. www.rbi.org. 3. www.igidr.ac.in.

Bond Market in India

Introduction of Bond market

Source of Finance Fixed interest is a price of Bond Bond for government securities and Debenture for Corporate securities Short or long expiry period

Bond Market in India

Types of Government Securities

Dated Securities Zero Coupon bonds Floating rate Bonds Bonds with call/put option

Bond Market in India

Characteristics of Bonds Face Value/ Par Value/Principal Amount Maturity Date Term to maturity Coupon amount

Bond Market in India

Bond Market in India

Bond Market in India

Reference
1. 2.

www.nseindia.com www.etindia.com

T Bills Market in India

Introduction Types of T Bills - 91 days T-bills - 182 days T-bills Future of T-bills

T Bills Market in India

Reference

www.nseindia.com