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.

The features of commercial bills are:
(i) Drawer
(ii) Acceptor
(iii) Payee
(iv) Discounter
(v) Endorser
(vi) Assessment
(vii) Maturity
(viii) Credit rating
Types of commercial bills are:
(i) Demand and usance bills:
(a) A demand bill is one wherein no specific time of payment is mentioned.
(b) So, demand bills are payable immediately when they are presented to the drawee.
(ii) Clean bills and documentary bills:
(a) Bills that are accompanied by documents of title to goods are called documentary bills.
(b) Clean bills are drawn without accompanying any document.
(c) Example: Railway receipt and Lorry receipt.
(iii) Inland bills and Foreign bills:
(a) Bills that are drawn and payable in India on a person who is resident in India are called inland bills.
(b) Bills that are drawn outside India and are payable either in India or outside India are called foreign bills.
(iv) Indigeneous bills: The drawing and acceptance of indigenous bills are governed by native custom or usage of trade.
(v) Accommodation and supply bills: Accommodation bills are those which do not arise out of genuine trade of transactions.

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.

(i) Short-term Funds:
It is a market purely for short-term funds or financial assets called near money.
(ii) Maturity Period:
It deals with financial assets having a maturity period upto one year only.
(iii) Conversion of Cash :
It deals with only those assets which can be converted into cash readily without loss and with minimum transaction cost.
(iv) No Formal Place:
Generally, transactions take place through phone i.e., oral communication.Relevant documents and written communications can be exchanged subsequently.
(v) Sub-markets :
It is not a single homogeneous market. It comprises of several sub-markets each specialising in a particular type of financing. 
(vi) Role of Market :
The components of a money market are the Central Banks, Commercial Banks, Non-Banking Financial Companies,Discount Houses and Acceptance House.Commercial banks generally plays a dominant role in this market.
 

 
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