The specific salient features mentioned in the guidelines for investment in Treasury Bills and Treasury Bonds may vary depending on the jurisdiction and regulatory framework in place.
However,
some common features typically addressed in such guidelines include:
1. Eligibility Criteria: The guidelines specify the eligibility criteria for entities or individuals that are permitted to invest in Treasury Bills and Treasury Bonds. This may include requirements such as being a licensed financial institution, meeting certain capital adequacy standards, or being a resident of the country.
2. Investment Limits: The guidelines typically outline the maximum investment limits that apply to Treasury Bills and Treasury Bonds. These limits can be set based on factors such as the type of investor, the size of the issuance, or the overall market conditions. Investment limits aim to promote diversification and prevent concentration of investments.
3. Maturity and Tenor: The guidelines provide information on the maturity and tenor of Treasury Bills and Treasury Bonds. They specify the available durations of these instruments, which may range from short-term (such as 91 days) to medium or long-term (such as 5, 10, or 30 years). The maturity and tenor options provide flexibility for investors with different investment horizons.
4. Auction Process: Guidelines often detail the auction process for the issuance of Treasury Bills and Treasury Bonds. This includes information on the frequency of auctions, the bidding process, and the settlement procedures. The guidelines may also outline the role of authorized financial institutions or primary dealers in participating in the auction process on behalf of investors.
5. Risk Considerations: The guidelines typically highlight the risk factors associated with investing in Treasury Bills and Treasury Bonds. This may include risks related to interest rate fluctuations, credit risk, liquidity risk, and market risk. The guidelines may also emphasize the importance of investors conducting their own risk assessments and due diligence before making investment decisions.
6. Secondary Market Trading: The guidelines may address the secondary market trading of Treasury Bills and Treasury Bonds. They may provide information on the platforms or exchanges where these instruments can be traded, the trading hours, and any specific regulations or guidelines related to secondary market transactions.
7. Reporting and Disclosure Requirements: Guidelines often include reporting and disclosure requirements for investors in Treasury Bills and Treasury Bonds. This may include periodic reporting on holdings, interest payments received, and any relevant updates or changes in the investment terms or conditions. Disclosure requirements aim to promote transparency and provide investors with timely and accurate information.
8. Regulatory Oversight: The guidelines specify the regulatory authority responsible for overseeing the issuance and trading of Treasury Bills and Treasury Bonds. They outline the role of the regulatory body in monitoring compliance with the guidelines, conducting inspections, and enforcing any applicable regulations or penalties for non-compliance.