What are various types of T-bills?
Treasury Bills are short term GOI Securities. They are issued for different maturities viz. 14-day, 28 days (announced in Credit policy but yet to be introduced), 91 days, 182 days and 364 days. 14 days T-Bills had been discontinued recently. 182 days T-Bills were not re-introduced. Who can invest in T-Bill ?[Top ] Banks, Primary Dealers, State Governments, Provident Funds, Financial Institutions, Insurance Companies, NBFCs, FIIs (as per prescribed norms), NRIs & OCBs can invest in T-Bills. What is auction of Securities?[Top ] Auction is a process of calling of bids with an objective of arriving at the market price. It is basically a price discovery mechanism. There are several variants of auction. Auction can be price based or yield based. In securities market we come across below mentioned auction methods. French Auction System : After receiving bids at various levels of yield expectations, a particular yield level is decided as the coupon rate. Auction participants who bid at yield
