Welcome to Midas Touch

Knowledge Center


Bonds & Government Securities

Bond means debt instruments issued by the Central, State Governments and Corporates.

Debt instruments are contracts in which one party lends money to another on pre-determined terms with regard to rate of interest to be paid by the borrower to the lender. The periodicity of such interest payment and the repayment of principal amount borrowed are done either in instalments or in bullet.

Principal features of Bond Coupon rate refers to the periodic interest payments that are made by the borrower to the lender. Coupon rate is the rate at which interest is paid, and is usually represented as a percentage of the par value of the bond.

Principal is the amount that has been borrowed and is also called the par value or face value of the bond.

Maturity of the bond refers to the date on which the bond matures, or the date on which the borrower has agreed to pay the principal amount to the lender.

Term to maturity refers to the number of years remaining for the bond to mature. Term to maturity of the bond changes every day, from the date of issue of the bond until its maturity.

Government Securities These are medium to long-term interest-bearing obligations issued through the RBI by the Government of India and state governments. The RBI decides the cut-off coupon on the basis of bids received during auctions. There are issues where the rate is pre-specified and the investor only bids for the quantity. In most cases the coupon is paid semi-annually.

Treasury Bills Treasury bills (T-bills) are short term obligations issued through the RBI by the Government of India at a discount. T-bills are issued through auction procedure for different tenures i.e. 91 days and 364 days. The yield is determined on the basis of bids tendered and accepted.

Certificate of Deposit Certificates of deposits (CD) are issued by scheduled commercial banks excluding regional rural banks. These are unsecured negotiable promissory notes. Bank CD’s have maturity period of 91 days to one year, while those issued by financial institutions have maturities between one and three years.

Commercial Paper Commercial Paper (CP) is a short term, unsecured instrument issued by public or private corporate bodies to meet short term working capital requirements. Maturity varies between three months and one year. This instrument can be issued to individuals, banks, companies and other corporate bodies registered or incorporated in India.


Midas Touch, disclaims responsibility and legal liability for any loss, harm, or damage, however caused, resulting from accessing any section of this website. Visitors to this website also consent to waive the right, by entering this website, to seek any form of restitution, damages, or remedy, monetary or otherwise, for any loss, harm, or damage, however caused, resulting from accessing this website. Midas Touch makes every effort to avoid making incorrect misrepresentations or misleading statements, and in no way encourages unconscionable or deceptive conduct in the providing of its services. By entering this website, you expressly accept that Midas Touch will not and cannot be held liable (in all forms of legal liability) for; and that Midas Touch does not warrant, guarantee, or represent (expressly or impliedly), that; information, opinion, commentary, data, or any other content in this website is accurate, valid, complete, legal, and current. The information in this website is obtained and compiled from various sources we believe to be reliable, but Midas Touch does not expressly or by implication guarantee its reliability. Nothing in this website constitutes an offer or solicitation of financial product, advice, recommendation and are not intended to constitute provision of investment, legal, tax, or other professional or financial advice. Such content therefore should not be relied upon for the making of any personal financial and investment decisions. Persons accessing this information are strongly encouraged to obtain appropriate professional advice from registered investment advisors before making any investment or financial decision. By entering, visitors to this website expressly accept that Midas Touch does not warrant, guarantee, or represent (expressly or impliedly) that the website is free from technical malfunction or human error, or that any services obtained through this website are of fitting quality and suitable for any particular purpose, and you expressly accept that Midas Touch will not and cannot be held liable (in all forms of legal liability) for any errors, inaccuracies or omissions (including any third party) and any loss or damages, whether incidental, consequential, or otherwise, resulting from its use or inability to use by any party, or in connection with any error, interruption, delay in operation or incomplete transmission, or line or system failure. Use of hyperlinks to or from other internet sites or resources are the users own risk. The content, accuracy, opinion expressed, and other external links provided at these sites are not investigated, verified, modified, or endorsed by Midas Touch. Midas Touch disclaim any responsibility for the accuracy, contents, availability, or inclusion or omission of information found on sites that link to or from this website. Visitors to this website are solely responsible for making all enquiries and investigation before proceeding with any online or offline access or transaction with any of these third parties. Midas Touch emphasises that all activities conducted by users at or via this website are at their own risk. Midas Touch does not warrant the security of any information users may forward, or be requested to provide, to any third parties. Users are deemed to have irrevocably waived any claims against the Midas Touch for any loss or damage suffered as a result of any access to or interaction with any other websites via this website. In the event that you may wish to access any services through this website, you are advised that any transactions over the Internet carry certain special risks. By agreeing to enter this website, visitors to this website expressly accept that Wealth Man will not and cannot be held liable (in all forms of legal liability) for any transactions that are processed over the internet. Online transactions may be subject to but not limited to, interruption, transmission, blackout, delayed transmission due to Internet traffic, or incorrect data transmission due to the public nature of the Internet. All information contained in this website is general information only. While special care has been taken in preparing the information and materials contained in this website, such information and materials are provided to users on an “as is” basis and carry no warranty or representation of any kind, express or implied. In particular, no warranty or representation is given for information and materials regarding non-infringement, security, accuracy, suitability for a particular purpose, or freedom from computer virus, Trojan horses, worms, software bombs or similar items. Moreover, the information contained in this website may be changed at any time without prior notice. Visitors to this website may print out items of interest for their own personal use only. Copyright notices and other identifying information must be removed from such printouts. The content of this or of any linked website must not be reproduced in any manner for any other purposes. Midas Touch reserves the right to pursue any necessary legal action for any copyright infringement. Midas Touch accepts no liability whatsoever for any loss or damage, or otherwise as stipulated in this legal disclaimer, arising from the use of any section of this website, whether or not such loss or damage is caused by reason of negligence, or otherwise on the part of Midas Touch. The users assume all risks associated with the use of this website including, but not limited to, all terms and conditions mentioned in this legal disclaimer.