Internal Debt Management in India : An Empirical Study of Treasury Bills Market by Chiragra Tapas Chakrabarty was submitted for the degree of Doctor o Philosophy in Economics of the University of Mumbai in 1999. Internal debt has become a part and parcel of the government budget and hence the RBI has to balance its monetary policies with the fiscal policies of the government so as to fulfil the overall objectives of our national economic policies. The focus is to study the management of the internal debt specially emphasizing on the objective function of Reserve Bank of India and at the same time the objective function of other players in the market. The study analyses the auction technique used in India for raising internal debt by the Central Bank for Central Government. Empirical findings cover whether rate movements evoke a response from investors leading to a possible confluence of interest rates in the system. After testing the pure expectation theory, attempt is made to formulate a model incorporating the linear combination of other non-stationary common factor underlining the time series behaviour of each yield to maturity during reforms period. The study is useful to make an observation on how far the bond market, main constituent of the Indian financial market has progressed to gain deepening during the financial reforms period so far.
Contents :
1. Introduction
2. Internal Debt in India: (Central Government) Concept, Profile and Management
3. Comparative Study of Government Security Market
4. The Concept of Term Structure and Yield Curve: A Review
5. Theory and Procedure of Auctions with Special Reference to India
6. Testing of Pure Expectations Theory in India: Tools and Techniques
7. Estimation of Treasury Bills Pricing : A Model
8. Conclusion
Bibliography
