T-BILL

T-BILL

T-bills or Treasury Bills are short-term money market instruments issued by the Government of India. These have a maturity period of less than a year. These securities don’t pay any interest on investment and are issued at a discount and redeemed at face value at the time of maturity. The government issues these bonds in three sub-categories, i.e., 91 days, 182 days and 364 days.

TAX FREE BONDS

TAX FREE BONDS

Tax free bonds are the debt instruments in which the interest income is exempt from taxes. These are issued by the government backed entities such as IRFC, HUDCO, REC, NHAI, etc. and listed on stock exchanges.

TERM SHEET

TERM SHEET

This is a document issued to lenders which describes key terms such as interest rate, maturity date, covenants etc…

TICKET SIZE

TICKET SIZE

Minimum amount required in a single investment.

TRANCHE

TRANCHE

A portion of security/instrument which is split and offered at different points in time.

TRUSTEE

TRUSTEE

Trustee is a company appointed by the issuer of a bond to act as custodians of funds and official representative of the bondholders.