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Market Treasury Bills (MTBs)
are short-term instruments of Government borrowing having the following
features:
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Zero Coupon bonds sold at a
discount to their face values
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Issued in three tenors of
3-month, 6-month and 12-months maturity
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Purchased by individuals,
institutions and corporate bodies including banks irrespective of their
residential status
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Can be traded freely in the
country?s secondary market.
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The settlement is normally
through a book entry system through Subsidiary General Ledger Accounts (SGLA)
maintained by banks with full bank guaranteed
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Physical delivery could be
affected if required
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Profit is taxable depends on
the rate specified by issuer body.
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