Fixed income securities can be bought in the primary and secondary markets.
- Primary Market comprises of new debt issues from PSUs, Banks, Public and Private Limited companies. Securities are issued at face value. Investors have to apply for primary issues during the investment window applicable for theses issues which can last upto 30 days.
- Secondary Market where investors can buy and sell debt securities which have been issued in the primary market.
This market can broadly be categorised into two segments:
- Wholesale Debt Market – dominated by RBI, Banks, financial institutions, insurance companies, Mutual funds, corporates and FIIs
- Retail Debt Market – dominated by Mutual Funds, Provident Funds, Pension Funds, Private Trusts, Religious Trusts and charitable organizations having large investible corpus, State Level and District Level Co-operative Banks, Housing Finance Companies, NBFCs and RNBCs, Corporate Treasuries, HUFs and Individual Investors.