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Treasury Bills

 
Treasury Bills are money market instruments offered to finance short term debt obligation of the Government of India. These short term instruments aid in pluging in the short term liquidity mismatches of the Central Government. In simple words, it acts as the working capital of the Central Government.
 
Treasury Bills, or T-Bills as they are colloquially called, are generally issued for a tenor of 91 Days, 182 Days and 364 Days. These are discounted instruments i.e. they are issued at a discount to par value. On maturity, they are redeemed at par value, with the difference between the discounted rate (at the time issuance) and maturity value being the return earned on such investments. The minimum amount in which they can be traded is Rs 25,000.
 
Just as in case of Dated G-Secs and SDLs, non competitive bidding is allowed in T-Bills. However, participation in the same is restricted only to State Governments, eligible Provident Funds, select foreign central banks and is not available to the co-operative banks for proprietary bids. Also, in case of T-Bills, the amount accepted for non-competitive bids is over and above the notified amount and no limit has been placed on the maximum amount that can be bid under this facility.
 
The trading and settlement mechanism for T-Bills transactions is similar to those for Dated G-Secs and SDLs. Moreover, it qualifies as an SLR investment and can also be used as collateral in repo transactions.
 
Clients interested buying/selling T-Bills may contact our Sales Personnel on 022-66202224/25/28. We endeavor to provide the best possible returns to our clients, keeping in line with their overall investment objectives.
 

Latest News

Reserve Bank of India
Reserve Bank of India kept policy rates unchanged while changing the stance to calibrated tightening from neutral in its Fourth Bi-monthly Monetary Policy. Consequently, key policy rates remained unchanged – Repo rate at 6.50%, Reverse Repo at 6.25% and Marginal Standing Facility (MSF) at 6.75%
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Inflation projections for 2018-19
Inflation projections for 2018-19 were revised downside as food inflation has remained benign. Including the impact of HRA, inflation is projected to be at 4% in Q2 FY19 (4.6% prev), 3.9%-4.5% in H2 FY19 (4.8% prev) and 4.8% in Q1 FY20 (5% prev). The GDP projection for FY19 has been maintained at 7.4% –with 7.5% in Q2 FY19 and 7.3-7.4% for H2 FY19. GDP growth for Q1 FY20 is projected at 7.4% (7.5% prev).
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Belying market expectations
Belying market expectations, headline consumer price inflation for Sep-18 stood at 3.77% compared to Aug-18 reading of 3.69%, remaining below the RBI’s medium term inflation target of 4% for second consecutive month. Core inflation also moderated to 5.81% vs. revised estimate of 5.92% last month (5.87% previously).
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September Wholesale
September Wholesale Price Index came in at 5.13% as against 4.53% in the August mainly due to rise in prices of Fuel and power as well as Manufactured Products. At the same time, July WPI print was revised upwards to 5.27% from 5.09% previously.
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Indias September manufacturing
India's September manufacturing PMI came in at 52.2, rising from 51.7 in August due to gains in new orders, output and employment.
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