They do not carry a coupon rate but are issued at a discount and redeemed at par. T-Bills are issued for a period of less than one year. Minimum investment required in case of T-Bills is Rs 25,000. The primary market caters to the needs of banks, financial institutions, provident funds, insurance, pension funds and primary dealers. These are actively traded in the secondary market by the above participants as well as corporates and individuals.
Quotes are available daily in newspapers.
Two-way quotes for buy and sell are given by the PD and the banks and these quotes or rates are market determined. Investors can buy and sell securities in demat form as well. The Settlement Process Investors desirous of trading in securities in demat form can open a constituent SGL account with the RBI through a PD or a bank. PNB Gilts opens the account free of charge and also does not charge for holding securities. The CSGL account will hold the securities in demat form.