The certificate of deposits are available for subscription by individuals, corporations, trusts, associations and NRIs.

The issuers of certificate of deposits are Commercial banks, Financial Institutions, etc.

364 days Treasury bills do not carry any fixed rate of discount. The discount rate on these bills are quoted in auction by the participants and accepted by the authorities. Such a rate is called cut -off rate.

(i) The Commercial Bill is an instrument drawn by a seller of goods on a buyer of goods.
(ii) It possesses the advantages like self-liquidating in nature, recourse to two parties, knowing exact date of transactions, transparency of transactions, etc.

According to Crowther "the money market is the collective name given to the various firms and institutions that deal in the various grades of near money".

(i) Bills that are accompanied by documents of title to goods are called documentary bills.
(ii) Clean bills are drawn without accompanying any document.
(iii) Example: Railway Receipt and Lorry Receipt.

A well-developed money market serves the following objectives :
(i) Providing an equilibrium mechanism for ironing out short-term surplus and deficits.
(ii) Providing a focal point for central bank intervention for influencing liquidity in the company.
(iii) Providing access in uses to users of short term money to meet their requirements at a reasonable price.

The various types of Commercial Bill are as follows:
(i) Demand  bills
(ii) Clean bill and documentary bills
(iii) Inland bills and foreign bills
(iv) Indigenous bills
(v) Accommodation and Supply bills.
         (i) Demand bills: A demand bill is one wherein no specific time of payment is mentioned.
         (ii) Clean bills and documentary bills: Bills that are accompanied by documents of title to goods are called documentary bills. Eg: Railway Receipt and Lorry Receipt.
        (iii) Inland bills and Foreign bills: Bills that are drawn and payable in India on a person who is resident in India are called inland bills. Bills that are drawn outside India and are payable either in India or outside India are called foreign bills.

Features of certificate of deposits are:
(i) Document of title to time deposit
(ii) It is unsecured negotiable instruments.
(iii) It is freely transferable by endorsement and delivery.
(iv) It is issued at discount to face value.
(v) It is repayable on a fixed date without grace days.

Treasury bills are issued to the public and other financial ínstitutíons for rneeting the short-tern financial requirernents of theCentral Governnent. These bills are freely rnarketable and they can be bought and old at any tíme and these bilis are tradable in secondary market as well.
On the basis of periodicity, Treasury bills maybe classified into three. They are:
     (a) 91 days Treasury bills
     (b) 182 days Treasury bills and
     (c) 364 days Treasury bills
(i)Ninety one days Treasury bills are issued at a fixed discount rate of 4 per cent as well as through auctions.
(ii)The RBI holds 91 days and 182 days Treasury bills and they are issued on tap basis throughout the week.
(iii)364 days Treasury Bills do not carry any fixed rate.The discount rate on these bills are quoted in auction by the participants and accepted by the authorities. Such a rate is called cut off rate.

The characteristics of government securities are discussed below:
(i) Agencies :
Government securities are issued by agencies such as Central Government,State Governments, semi-government authorities like local Government authorities,example municipalities,autonomous institution such as metroplitian,port trusts etc.
(ii) RBI Special Role:
RBI takes a special and an active role in the purchase and sale of these securities as part of its monetary management exercise.
(iii) Nature of Securities:
Securities offer a safe avenue of investment through guaranteed payment of interest and repayment of principal by the Government.
(iv) Liquidity Profile:
The liquidity profile of gilt-edged securities varies.Accordingly liquidity piofite of securities issued by Central Government is high.
(v) Tax Rebate:
A striking feature of these securities is that they offer wide-range of tax incentives to investors.This has made these securities very popular for this benefit.
(vi) Market:
As each sale and purchase has to be negotiated separately, the Gilt-Edged Market is an Over-the-Counter Market.The government securities market in India has two segments namely primary market and secondary market.

1. Treasury Bills
(i) Treasury bills are very popular and enjoy a higher degree of liquidity since they are issued by the Government
(ii) A Treasury bill is nothing but a promissory note issued for a specified period stated therein.
(iii) The Government promises to pay the specified amount mentioned therein to the bearer of the instrument on the due date. The period does not exceed a period of one year.
2. Certificate of Deposits
(i) Certificate of Deposits are short-term deposit instruments issued by banks and financial institutions to raise largl sums of money.
(ii) Certificate of Deposits are issued in the form of usance promissory notes.
(iii) They are easily convertible in nature and are in marketable form having particular face value and maturity.
3. Commercial Bills
(i) A bill of exchange issued by a commercial organization to raise money for short term needs.
(ii) These bills are of 30 days, 60 days and 90 days maturity.
(iii) The commercial bill is an instrument drawn by u seller of goods on a buyer of goods.
(iv) It possess the advantages like self-liquidity in nature, recourse to two parties, knowing exact date of transactions, transparency of transactions, etc.
4. Government or Gilt Edged securities Market
A market whereby the government or gilt-edged securities can be bought and sold is called 'Government Securities Market'.
Government securities are issued for the purposes of refunding the maturing securities, for advance refunding securities, which have not yet matured and for cash financing, (i.e.) raising fresh cash resources.

 
S.No Features Money Market Capital Market 1. Duration of
funds It is a market for short-term loanable funds for a period of not exceeding one year. It is a market for long-term funds
exceeding period of one year. 2. Deals with
Instruments It deals with instruments like commercial
bills (bills of exchange, treasury bill, commercial papers, etc.) It deals with instruments like shares debentures,government bonds, etc. 3 Money Value Each single money market instrument is of large amount.Each certificate of deposits or commercial paper is for minimum of  ₹ 5 lakhs Each single capital market instrument is of small amount. Each share value is ₹10. Each debenture value is ₹100. 4 Role of major
institutions The central bank and commercial banks are the major institutions in the money market Development banks and Insurance
companies play a dominant role in the
capital market. 5 Risk Low credit and market risk High credit and market risk. 6 Liquidity High liquidity in Money Market Low liquidity in Capital Market