The money market is a market for short-term financial assets that are close substitutes of money. The most important feature of a money market instrument is that it is liquid and can be turned over quickly at low cost and provides an opportunity for balancing the short-term surplus funds of lenders and the requirements of borrowers. By convention, the term "Money Market" refers to the market for short-term requirement and deployment of funds. Money market instruments are those instruments, which have a maturity period of less than one year. The most active part of the money market is the market for overnight call and term money between banks and institutions and repo transactions. Call Money / Repo are very short-term Money Market products. There is a wide range of participants(banks, primary dealers, financial institutions, mutual funds,trusts,provident funds etc.) dealing in money market instruments. Money Market Instruments and the participants of money market are regulated by RBI and SEBI.As a primary dealer SBI DFHI is an active player in this market and widely deals in Short Term Money Market Insrtruments.
The below mentioned instruments are normally termed as money market instruments:
- Call/ Notice/ Term Money
- Repo/ Reverse Repo
- Inter Corporate Deposits
- Commercial Paper
- Certificate of Deposit
- Inter Bank Participation Certificate