M.D.

COLLEGE

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MONEY MARKET INSTRUMENTS

UNIVERSITY OF MUMBAI
PROJECT ON
MONEY MARKET INSTRUMENT
Bachelor of Commerce
Financial Markets
Semester VI
(2015-2016)

Submitted
In partial Fulfillment of the requirement for the
Award of Degree of Bachelor of Commerce Financial Market.

Submitted By,
SANKET SUNIL SAWANT
Roll No. - 43

Under Guidance,
PROF. NEHA MISS
MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE &
COMMERCE PAREL, MUMBAI 400 012.

B.COM (FINANCIAL MARKETS)

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MONEY MARKET INSTRUMENTS

MAHARSHI DAYANAND COLLEGE

OF ARTS, SCIENCE & COMMERCE
PAREL, MUMBAI 400 012.

CERTIFICATE
This is to certify that MR. SANKET SUNIL SAWANT of B.Com
(Financial Markets) Semester VI (2015-2016) has successfully
completed the project on MONEY MARKET INSTRUMENTS
under the guidance of PROF. NEHA MISS

Course Coordinator

Project Guide/Internal Examiner

Principal

External Examiner

B.COM (FINANCIAL MARKETS)

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MONEY MARKET INSTRUMENTS

DECLARATION
I am MR. SANKET SUNIL SAWANT The student of B. com
(Financial Markets) Semester VI (2015-2016) hereby declares that I
have

completed

the

Project

on

MONEY

MARKET

INSTRUMENTS. The information submitted is true and original to

the best of my knowledge.

Signature of student
Name of Student
MR. SANKET SUNIL SAWANT
Roll No. 43

B.COM (FINANCIAL MARKETS)

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MONEY MARKET INSTRUMENTS

ACKNOWLEDGEMENT
The college, the faculty, the classmates & the atmosphere, in the
college were all the favorable contributory factors right from the point
when the topic was to be selected till the final copy was prepared. It
was a very enriching experience throughout the contribution from the
following individuals in the form in which it appears today. We feel
privileged to take this opportunity to put on record my gratitude
towards them.
PROF. KUNAL SONI SIR made sure that the resource was made
available in time & also for immediate advice & guidance throughout
making this project. The principal of our college DR. T.P.GHULE
and our Vice-Principal Mrs. SANJEEVANI PHATAK has always
been inspiring & driving force. We are thankful to Mr. SANTOSH
SHINDE associated with administration part of Financial Markets &
Banking & Insurance section has been very helpful in making the
infrastructure available for data entry.

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MONEY MARKET INSTRUMENTS

EXECUTIVE SUMMARY
The money market consist of financial institutions and dealers in
money or credit who wish to either borrow or lend for short periods of
time, typically up to thirteen months. Money market trades in short-term
financial instruments commonly called paper. This contract with
capital market for long term funding, which is supplied by bonds and
equity. The core of the money market consists of banks borrowing and
lending to each other, using commercial paper, repurchase agreements
and similar instruments. Basically the money market deals with short
term debt securities that mature in year. The money market is very
secure as compared to the bonds market. This security comes at the cost
of very low rated of return.
The money market securities are extremely liquid and are issued
by government, financial institutions or large corporations. The money
market securities are traded over the phone or any electronic system
unlike the bone market the trade in exchange through brokers.

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MONEY MARKET INSTRUMENTS

INDEX
Sr. No

PARTICULERS

INTRODUCTION TO MONEY MARKETS

TREASURY BILL

Pg. No

CALL MONEY MARKET

COLLATERLIZED BORROWING & LENDING

OBLIGATION

14

COMMERCIAL PAPERS

19

CERTIFICATE OF DEPOSITE

23

COMMERCIAL BILL

28

REPO & REVERSE REPO

31

CONCLUSION

36

BIBLOGRAPHY

38

10

B.COM (FINANCIAL MARKETS)