Who are the investors in Debt market? Explain briefly any five.

Trustees are the entities who invest in fixed income instruments: Banks: Collectively all the banks put together are the largest investors in the debt market. They invest in all instruments ranging from T-Bills, CPs and CDs to GOISECs, private sector debentures etc. Banks lend to corporate sector directly by way of loans and advances and also invest in debentures issued by the private corporate sector and in PSU bonds. Insurance Companies: The second largest category of investors in the debt market are the insurance companies. Provident Funds: Provident funds are estimated to be the third largest investors in the debt market. Most of the provident funds are very safety oriented and tend to give much more weightage to investment in government securities although they have been considerable investors in PSU bonds as well as state government backed issues. Mutual Funds: Mutual Funds represent an extremely important category of investors. World over, they have almost surpassed banks as the largest direct collector of primary savings from retail investors. Mutual Funds include UTI, the mutual funds set up by nationalized banks, and insurance companies and overseas mutual fund companies. Trusts: Trusts include religious and charitable trusts as well as statutory trusts formed by the government and quasi-government bodies. Corporate Treasuries: These have become prominent investors in the recent past. The corporate treasuries can be public sector units or private sector companies or any other government bodies or agencies. Foreign Portfolio Investors: These investors have to be specifically and separately approved by SEBI for equity and debt. Each FPI is allocated a limit every year up to which it can invest in Indian debt securities. Retail Investors: Retail investors are permitted submit non-competitive bids at primary auction through any bank or primary dealers.