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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Debt Instruments and Government Securities

A client asks which of these instruments issued by the Government of India has a maturity of less than one year and is issued at a discount to face value, redeemed at par.

A Treasury Bill is the instrument. It is a short-term government security with maturity under one year, issued at a discount and redeemed at face value, with no periodic coupon. Dated securities and floating rate bonds carry coupons and have longer maturities.

  1. ATreasury BillCorrect
  2. BDated Government Security
  3. CSovereign Gold Bond
  4. DFloating Rate Bond

Explanation

Treasury Bills are short-term money market instruments with maturities of 91, 182 or 364 days, issued at a discount and redeemed at face value, with no coupon. Dated G-Secs are long-term with coupons, and the other options are not short-term discount instruments.

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