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    DFHIL

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    raj dhumal
    DFHI was established in 1988 by the Reserve Bank of India and public sector banks to develop the money market and provide liquidity to money market instruments. It aims to even out liquidity imbalances, promote the secondary market for short-term instruments, and provide safe investment options. DFHI facilitates transactions through its Constituent SGL Account, and deals in treasury bills, government securities, certificates of deposit, commercial paper, and call money. It plays an important role in the inter-bank market and advises on money market growth.

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    DFHIL

    Uploaded by

    raj dhumal
    576 views15 pages
    DFHI was established in 1988 by the Reserve Bank of India and public sector banks to develop the money market and provide liquidity to money market instruments. It aims to even out liquidity imbalances, promote the secondary market for short-term instruments, and provide safe investment options. DFHI facilitates transactions through its Constituent SGL Account, and deals in treasury bills, government securities, certificates of deposit, commercial paper, and call money. It plays an important role in the inter-bank market and advises on money market growth.

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    DFHI was established in 1988 by the Reserve Bank of India and public sector banks to develop the money market and provide liquidity to money market instruments. It aims to even out liquidity imbalances, promote the secondary market for short-term instruments, and provide safe investment options. DFHI facilitates transactions through its Constituent SGL Account, and deals in treasury bills, government securities, certificates of deposit, commercial paper, and call money. It plays an important role in the inter-bank market and advises on money market growth.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    576 views15 pages

    DFHIL

    Uploaded by

    raj dhumal
    DFHI was established in 1988 by the Reserve Bank of India and public sector banks to develop the money market and provide liquidity to money market instruments. It aims to even out liquidity imbalances, promote the secondary market for short-term instruments, and provide safe investment options. DFHI facilitates transactions through its Constituent SGL Account, and deals in treasury bills, government securities, certificates of deposit, commercial paper, and call money. It plays an important role in the inter-bank market and advises on money market growth.

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    Discount and finance house of India

    Limited
    INTRODUCTION

    • DFHI was set up in March 1988 by Reserve Bank of


    India jointly with public sector banks and all India
    Financial Institutions to develop the money market
    and to provide liquidity to money market instruments.
    CONTENT LIST
    1. History of DHFI
    2. Objectives of DHFI
    3. CS Account
    4. Money market instruments of DHFI
    5. Roles of DHFI
    6. Who can deal with DHFI
    7. Conclusion
    8. References
    HISTORY OF DHFI
    • DFHI was incorporated on March 8, 1988 under the
    Companies Act, 1956 with an authorised share capital of
    Rs.100 crore subscribed by the RBI (Rs.51 crore), Public
    Sector Banks (Rs.33 crore) and All-India Financial Institutions
    (Rs.16 crore).
    OBJECTIVES OF DHFI
    1. To even out the liquidity imbalances in the banking system.
    2. To promote secondary market in short term money market
    instruments.
    3. to integrate markets at regional centres with the main market at
    Mumbai, through its network.
    4. Provide safe and risk-free short-term investment avenues to
    institutions.
    5. Provide greater liquidity to money market instruments.
    6. Facilitate money market transactions for small and medium sized
    institutions who are not regular participants in the market.
    OBJECTIVES OF DHFI CONT…
    7. DFHI provides the 'Constituent SGL' Account facility which
    enables even those entities which otherwise do not have an
    SGL Account facility with the RBI to reap the full benefits of
    investing in government securities.
    CONSTITUENT SGL ACCOUNT

    • DFHI has opened a 'Constituent SGL' account with the RBI.


    According to the procedure laid down by RBI, customers of
    DFHI can open Constituent SGL Accounts with DFHI. Their
    holdings in T-Bills and dated government securities are
    transacted through this account
    MONEY MARKETS INSTRUMENTS OF
    DHFI

    DFHI deals in the following instruments/products:

    • Treasury Bills

    • Dated Government Securities

    • Certificates of Deposit

    • Commercial Papers

    • Call (overnight) Money


    ROLES OF DHFI

    1. To discount , purchase and sale treasury bills, trade bill, bills


    of exchange, commercial bills and commercial papers.

    2. To play an important role as a lender, borrower or broker in


    the Inter- Bank call money market.

    3. To promote and support company funds, trusts and other

    organization for development of short term money market.


    ROLES OF DHFI CONT…
    4. To advise government, banks and financial institutions in
    evolving schemes for growth and development of money
    market.
    5. It mobilizes funds/resources from commercial or cooperative
    banks ,FI and corporate entities which are pooled and lend the
    money market.
    6. Help the corporate entities, banks and FI to raise short term
    money and invest short term surplus.
    ROLES OF DHFI CONT…

    7. It stabilize the call and short term deposit rate through larger
    turnover.

    8. It extends repos, buy back facility to 14 days to banks money


    market instruments.

    9. Two regular quotes- Bid and offer in money market instruments


    provided by DHFI serve as a base to broaden the secondary
    market and give an assure liquidity to the instruments.
    WHO CAN DEAL WITH DHFI
    1. Individuals

    2. Corporate

    3. Regional rural banks

    4. Cooperative banks

    5. Provident funds, Pension funds, Gratuity funds

    6. Trusts

    7. Insurance Companies.

    8. Mutual funds

    9. Banks
    CONCLUSION

    • DHFI can achieve sustained growth and more effective role to


    fulfill the basic objective of the money market or by making
    the smooth facilities for short term liquidity.
    REFERENCES
    • https://en.wikipedia.org/wiki/Money_market_in_India

    • http://www.sbidfhi.co.in

    • http://kannanpersonal.com/learning/finance/dfhi.html

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