MANAGEMENT

Detailed explanation-1: -These are securities issued by the state governments. The issues are also managed and serviced by the Reserve Bank of India.

Detailed explanation-2: -In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs). G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.

Detailed explanation-3: -3.3 The Reserve Bank of India conducts auctions usually every Wednesday to issue T-bills of 91day, 182 day and 364 day tenors. Settlement for the T-bills auctioned is made on T+1 day i.e. on the working day following the trade day.

Detailed explanation-4: -Who issues treasury bills and who can buy? Treasury bills were first issued in India in 1917. They are issued via auctions conducted by the Reserve Bank of India (RBI) at regular intervals. Individuals, trusts, institutions and banks can purchase T-Bills.

Detailed explanation-5: -Adhoc treasury bills are issued in favour of the RBI only.