Meaning, need and benefits of depository system in India, difference between demat and physical share, depository process, functioning of NSDL and SHCIL Importance of Debt market in capital market, participant in the debt market, types of instrument treated in the Debt market, primary and secondary segments of debt market.

1. UNIT-III

2. Meaning, need and benefits of
depository system in India
An effective and fully developed depository system is essential for maintaining and
enhancing the efficiency of a mature capital market
Before introduction of Depository system, the problems faced by investors and corporates in
handling large volume of paper were as follows:
 Bad deliveries
 Fake certificates
 Loss of certificates in transit
 Mutilation of certificates
 Delays in transfer
 Long settlement cycles
 Mismatch of signatures
 Delay in refund and remission of dividend etc
The Depositories Act defines a depository as a company formed and registered under the
Companies Act, 1956 and
which has been granted a certificate of registration under subsection (1A) of section 12 of Securi
ties and ExchangeBoard of India Act, 1992.´A depository is a firm where in the securities of an
investor are held in an electronic form in the same way as a bank holds money. It carries out the
transactions of securities by means of book keeping entry, without any physical
movement of securities. Depository system essentially aims at
eliminating the voluminous and cumbersome paper work involved in the script-
based system and offers scope for “paperless”trading through state-of-the-art technology. It is an
institution which maintains an electronic record of ownership of securities.

3. NEED FOR DEPOSITORY SYSTEM
In India the need for setting up a depository was realized after the large scale of irregularities in
securities transactions of 1992 exposed the limitations of the prevailing system. Therefore, the
need for depository system was realised for the growth of primary market, which would reduce
the time between the allotment of shares and transfer of entitlements arising out of each
allotment.
The idea of setting up of a depository and the introduction of script less trading and settlement for
improving the efficiency and eliminating the various problems associated with dealings in
physical certificates.
A depository system benefits the investing public, the issuers of securities, the
intermediaries and the nation as a whole. The depository system in our country was
initiated by the Stock Holding Corporation of India Limited (SHCIL) in July,1992. The
Depositories Act was passed by the parliament in the August,1996. Which lays down the
legislative frame work for facilitating the dematerialisation and book entry transfer of securities in
a depository.
The Act provides that a depository, which is required to be a company under the Companies
Act,1956, and depository participant i.e. agents of the depository need to be registered with
Stock Exchange Board of India (SEBI).The depository shall carry out the dematerialization of
securities and the transfer of beneficial ownership through electronic book entry. The investors,
however, have the option to hold securities in physical or dematerialized form, or to rematerialize
securities previously held in dematerialized form.
SEBI has notified the regulations in May,1996, with regard to norms for registration of depositories
and participants, the eligibility criteria for admission of securities to a depository.
The National Securities Depository Limited (NSDL), the first depository in India which has been
promoted by IDBI, UTI and NSE. It has commenced its operation from November 8,1996.To
begin with only the capital market segment of NSE has been associated with the NDSL as only

4. BENEFITS
Benefits of depository system –
•Elimination of bad deliveries, elimination of risks associated with physical certificates, Immediate transfer &
registration of securities
•Faster disbursement of non cash benefits rights, bonus etc. Reduction in brokerage, Reduction in handling of
paper & periodic reports to investor
•Elimination of problems related to change of address of investor, transmission etc.
Benefits To the nation:
•Growing and more liquid markets
•Increase in competitiveness in the international market place attracting many investors
•Improved prospects for privatisation of public sector units by creating a conducive environment
•Considerable reduction in delay
•Minimises settlement risk and fraud restoring investors’ faith in the capital markets
To the investing public
•Reduction of risks associated with loss, mutilation, theft and forgery of physical scrip
•Elimination of financial loss from loss of physical scrip
•Greater liquidity from speedier settlements
•Reduction in delays in registration
•Faster receipt of corporate benefits
•Reduced transaction costs through greater efficiency
To issuers:
•Up-to-date knowledge of shareholders’ names and addresses
•Reduction in printing and distribution costs of new issues
•Easy transfer of corporate benefits
•Improved ability to attract international investors without having to incur expenditure of issuance in overseas
markets

5. Depositories in India
Presently there are two Depositories working in India:
 National Securities Depository Limited (NSDL) It was registered by the SEBI on june 7 1996 as India’s
first Depository to facilitate trading and settlement of securities in the demat form. It is promoted by IDBI,
UTI, NSE
 Central Depository Services (India) Limited (CSDL) It commenced its operations during feb 1999 and
was promoted by Stock Exchange Mumbai in association with Bank of Baroda, Bank of India, SBI and
HDFC Bank
At present 10 Stock Exchanges are connected to the Depositories
 NSE
 The SE , mumbai
 Calcutta Stock Exchange
 Delhi SE
 Ludhiana SE
 Bangalore SE
 Over the counter exchange of India
 Madras SE
 Inter connected SE
 Ahmedabad SE
 Market trade: trade done settled through a SE and clearing corporation.
 Off market trades: trades done privately without involvement of stock brokers and SE
 Again investor may either choose to invest privately, through SB or DP

6. Constituents of a Depository
System
 Depository
 Depository Participant (DP)
 Securities, Issuers and Registrars and Share
Transfer Agents
 Stock Exchanges and Stock Brokers
 Clearing Corporation/ Clearing House and
Clearing Members
 Banking system
 Investors

7. Depository : it is an organisation where the securities are held in
electronic form and carries out the securities transaction by
book entry.
DP : DP is an agent of the depository and functions as the
interacting medium between the depository and the investor.He
should be registered with the SEBI.
 Must possess requisite qualifications prescribed by the
concerned depository of which he is a participant
 He is responsible for maintaining the investors’ securities a/c
with the depository and handles them as per the investors
written instructions
 He is linked to a broker who trades on behalf of investors
 To avail their services an account similar to a bank a/c has to be
opened with the DP
 As per SEBI Regulations , financial institutions, banks,
custodians, stock brokers etc can become DP’s
 However investors may choose DP’s of their choice and also
deal with 1 or more DP;s at a time
Securities, Issuers and Registrars and Share Transfer Agents:
eg: an agreement between the depository , issuer of security
and the designated registrar/ share transfer agents for the
underlying security in the cases of issues like transfer of

8. Stock Exchanges and Stock Brokers
 SE is an organised market for dealings in securities
commonly referred as secondary market.one of its main
functions is price discovery i.e to cause prices to reflect
currently avalable information about a security
 SB are members of SE primarily engaged in 2 main
activities i.e buy and sell securities for their clients charging
a comm and as dealers or traders and dealers they buy
and sell on their own a/c for trading gains
Clearing Corporation/ Clearing House and Clearing
Members
 A clearing corporation is a central organisation created to
facilitate efficient , fast and economical settlement of
transactions at a SE . it being an internal department of a
SE is an independent entity
 The members of Clearing Corporation brokerage firms,
banks or other financial institutions who are called as
clearing members.
 Eg:all trades done at NSE & OTCEI are settled through

9. Banking system
 Depository essentially plays a dual role i.e of a
depository and a limited bank
 It maintains current a/c’s for participants and executes
fund transactions relating to securities transactions for
participants
Investors :may be individuals or corporates who have
acquired shares either in primary market or in
secondary market

10. Facilities offered by Depository
System
 Opening of depository system
 Dematerialisation
 Rematerialisation
 Settlement of trades in dematerialised securities
 Account transfer
 Transfer ,transmission and transposition
 Pledge and hypothecation
 Redemption or repurchase
 Stock lending and borrowing
 Corporate action
 Account freezing
 Nomination
 Demat of debt instruments
 Dealing in govt securities

11. Opening of depository system: SEBI has made compulsory
trading of shares of all the companies listed in stock
exchanges in demat form w.e.f 2nd jan 2002
 Hence if the investor wants to trade in respect of the
companies which have established connectivity with NSDL &
CSDL, he may have to open a beneficiary a/c
 Beneficiary a/c is an a/c opened by the investor or a broker
with a DP of his choice to hold shares in demat form and
undertake scripless trading
 For opening demat a/c, the following documents are required:
 Demat opening form duly filled
 Address proof
 photograph
 Once a demat a/c is opened investor must sign an agreement
with the DP and the investor will be allotted an account no.
called as client identity
 No minimum balance is required
 The investor is provided with a transaction statement by his
DP at regular intervals based on which the investor will know

12. Dematerialisation
 It means conversion of the physical certificates into dematerialised holdings at the
request of the investor
 Only shares registered in the name of the a/c holder are accepted for dematerialisation
at the depository
 Procedure:
 First open a demat a/c or security a/c with any DP of investor’s choice
 Obtain a/c no. from his DP
 A dematerialisation request form (DRF) to be submitted to the DP who intimates
depository of the request
 DP then submits the certificate along with the DRF to the registrar who confirms the
demat request
 Registrar validates the request, updates records ,destroys the certificates and informs
depository who in turn credits the DP a/c
 Depository participant updates the investor a/c and informs the investor
 Once the company is admitted into depository system, an ISIN (international securities
identification number) is allotted by the depository. This no. is unique for each security of
the company that is admitted in the depository
 The entire process takes about 15 days time.
 However when large no. of certificates are submitted from institutions, it takes upto 30
days for demat
 An investor may demat a part of his holdings and hold the balance in physical mode for
the same security
 Demat shares are fungible because they do not have any distinctive or certificate
numbers

13. Rematerialisation
 It means conversion of demat holdings back into certificates
 If the investors wish to get the securities in physical form ,all he has to do is to request DP for
remat
Procedure :
 Investor must fill up a remat request form (RRF)
 The DP will forward the request to depository after verifying that the shareholder has the
necessary balances
 Depository will in turn intimate the registrar
 RTA (registrar & transfer agent) will print the certificates and dispatch the same to the investor
Settlement of trades in dematerialised securities
 The following stock exchanges have been admitted on the depository to conduct this activity
 NSE
 The SE , mumbai
 Calcutta Stock Exchange
 Delhi SE
 Ludhiana SE
 Bangalore SE
 Over the counter exchange of India
 Madras SE
 Inter connected SE
 Ahmedabad SE

14. Account transfer
 Depository gives effect to all transfers resulting from the settlement of trades and other transactions that take
place between various beneficial owners.
 Buying of securities:
 It is similar to buying of physical securities
Procedure:
 Investor purchases securities in any of the SE connected to Depository through a broker
 Investor pays broker
 Broker pays clearing corporation
 On the pay – out day broker receives credit for securities
 He gives instructions to DP to debit clearing a/c and credit clients a/c
 Investor receives shares into his a/c
 Investor has to make sure that the broker transfers the securities into his a/c before the book closure
 Or else the company may hive corporate benefits to the broker
Selling of securities: procedure
 Investor sells securities in any SE linked to depository through a broker
 Investor gives instruction to DP to debit his a/c and credit broker’ a/c
 Before the pay-in day, investor’s broker transfers the securities to clearing corporation
 Broker receives payment from SE
 Investor receives payment from broker
 Sale in demat form is similar to sale under physical mode
Transfer:
 Depository being electronically linked to DP’s, issuer company or registrar & transfer agent and the clearing
corporation of the SE, serves as an integrated set up for maintenance of investor a/c’s
 Hence , here transfer of securities occur merely by passing book entries in the records of the depository as
and when instructed by the beneficial owners

15. Transmission: the claimant will have to fill a TRF i.e a transmission request form
supported by documents like death certificate, succession certificate etc
 The DP after verifying that the application is genuine, will transfer securities to
demat a/c of claimant
 Demat transmission all the formalities can be completed in one go
Transposition
 Security certificates for this purpose must be submitted along with TRF and DRF
to the DP
Pledge and hypothecation
 Depositories allow the securities placed with them to be used as collateral to
secure loans and other credits
 Pledging demat securities is easier and advantageous than pledging physical
securities
Procedure:
 Both borrower (pledger) and lender (pledgee) must have depository a/c’s
 Details of securities to be pledged should be submitted by the pledger to his DP
in a standard format
 Pledgee should confirm the request through his DP
 Once this is done, securities are pledged.then the financial transactions between
pledger and pledgee are handled outside the depository system
 After the loan is repaid, the borrower can request for a closure of pledge by
instructing his DP

16. Redemption or repurchase
 This occurs when the securities are surrendered to the issuer either on maturity or
in pursuance of an option given by the issuer , in lieu of agreed consideration.
 The consideration may be in cash or new securities in lieu of existing securities
Procedure:
 RRF (repurchase request form) is used instead of remat RF
 Client may be paid in cash or new securities in lieu of existing securities
Stock lending and borrowing
 It involves lending and borrowing of securities under an approved scheme
 It is executed through approved intermediaries duly registered with SEBI under the
securities lending act 1997
 Intermediaries may deal in a depository system only through a special a/c known
as intermediary a/c opened with a participant
Corporate action
Nomination
 Like shares in physical form, shares in electronic form also can be nominated
 Nomination can be made only by individuals holding beneficiary a/c
 Minor can nominate only through guardian
 It can be made demat a/c wise and not security wise

17. Demat of debt instruments
 Debt instruments can also be held in demat form
 Instruments like bonds, debentures, CP’s, CD’s
 From oct 31st 2001, RBI has mentioned that banks and financial institutions shall make
investment in deb and bonds only in demat form
 Investor need not open separate demat a/c for demat of debt or instruments
 Procedure for demat of debt instruments is same as that of equity shares
 The investor has to ensure that before the certificates are handed over to the DP for demat, he
marks ‘surrendered for dematerialisation’ on the face of the certificates
Dealing in govt securities
 A subscriber to govt securities who opts for SGL securities may open an SGL a/c with RBI or
any other approved entity on its own a/c are held in SGL 1 a/c and investments held on a/c of
other clients are held in SGL 2 a/c
Safety features in depository
 To ensure safety to the investors the following measures are existing:
 DP cannot effect any debit or credit in the demat a/c of the investor the valid authorisation of the
investor
 Regular reconciliation between DP and depositories
 Periodic inspection by depositories of the office of DP and registrar ( RTA)
 All investors have a right to receive their statement of a/c’s periodically from the DP
 If the depository goes bankrupt, the creditors of the DP will have no access to the holdings in the
name of the clients of the DP. Such investors may however transfer their holdings to another DP
 Compulsory internal audit of operations of DP by practicing Chartered Accountant every quarter
 Steps to be taken for safe keeping and back up of data at all levels

18. National Securities Depository Limited
National Securities Depository Limited (NSDL) is an Indian central securities depository based in Mumbai. It was established on 8 November
1996 as the first electronic securities depository in India with national coverage based on a suggestion by a national institution responsible
for the economic development of India .It has established a national infrastructure using international standards that handles most of
the securities held and settled in dematerialised form in the Indian capital market.
Although India had a vibrant capital market which is more than a century old, the paper-based settlement of trades caused substantial problems
such as bad delivery and delayed transfer of title. The enactment of Depositories Act in August 1996 paved the way for establishment
of National Securities Depository Limited (NSDL), the first depository in India. It went on to establish infrastructure based on international
standards that handles most of the securities held and settled in de-materialised form in the Indian capital markets.
In the depository system, securities are held in depository accounts, which are similar to holding funds in bank accounts. Transfer of ownership
of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with
paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in
certificates. In August 2009, number of Demat accounts held with NSDL crossed one crore.
NSDL is promoted by Industrial Development Bank of India Limited (IDBI) - the largest development bank of India, Unit Trust of India (now,
Administrator of the Specified Undertaking of the Unit Trust of India) and National Stock Exchange of India Limited (NSE) - the largest stock
exchange in India. Some of the prominent banks in the country have taken a stake in NSDL.
 Other Shareholders
 Axis Bank Limited
 State Bank of India
 Oriental Bank of Commerce
 Citibank
 Standard Chartered Bank
 HDFC Bank Limited
 The Hongkong and Shanghai Banking Corporation Limited
 Deutsche Bank
 Dena Bank
 Canara Bank
 Union Bank of India

19. Stock Holding Corporation of India Limited
 Stock Holding Corporation of India
Ltd (SHCIL), India’s largest custodian and
depository participant based
in Mumbai,Maharashtra. It was established in
1986 under the Government of India as public
limited company. It is owned by the India's
leading Banks and Financial Institutions such as,
SU-UTI, IFCI Ltd., LIC, GIC, NIA, NIC, UIC, and
TOICL.SHCIL is known for its online trading
portal with investors and traders.
 It is also responsible for e-stamping system
around India.
 Stock Holding Corporation of India (SHCIL), the
country's first and one of the largest security

20. DEBT MARKET
The debt market is any market where trading of debt
instruments/ securities take place.
 A market where fixed income securities are issued and
trade is called Debt Market
 Govt. needs large amount of money to carry out many
welfare activities
 Govt. raise money by issuing govt. securities (.i.e. Debt
Securities)
 Debt Market is vast in nature
 The turnover of Debt Market is greater than Equity Market
in all over the world
 Total size of Indian Debt market is in the rang of $91 bn to
$100 bn i.e. approximately 30% of Indian GDP

21. ADVANTAGES
Advantages
Low risk
Liquidity
Security
Returns
Economic development
Advantages

22. Indian Debt Market Structure
Regulators
SEBI, RBI
Market segment
The
Sovereign
Issuer
The Public
Sector
The Private
Sector
Central Govt.
State Govt.
Issuers Instruments
GOI dated
securities, T-Bills,
state Govt.securities
index bonds, Zero
compound bonds
Investors
RBI
DFI
Govt. Agencies &
State Govt. Bodies
PSU
Commercial Bank,
DFI
Govt. bonds,
Debentures
PSU bond,
Debentures, CP
CD, Debentures,
Bonds
Banks
Pension Funds
FII
Corporates
Individuals
Provident
Funds
Insurance
companies,
Trusts, Mutual
Funds
Corporate
Pvt. Sectors Banks
Bonds,
Debentures, CP
Bonds,
Debentures, CD &
CP

23. Market Segment
Market Segment
Govt.
Securities
Public Sector
Unit Bond
Corporate
Securities

24. PARTICIPANTS
Participants
Central & State Govt.
RBI
Primary Dealer
Public Sector Undertaking
Banks
Mutual Funds
Foreign Institutional Investors
Charitable Institutes & Trusts

25. PARTICIPANTS
IN THE
DEBT MARKET
Central
Government
RBI
Primary
Dealers
Public
Sector
Charitabl
e
Institutio
ns
Provident
Funds
Foreign
Institutio
nal
Mutual
Funds
Banks
Financial
Institutio
ns
Corporat
e
treasurie
s
State
Governme
nt

26. Instruments
Bond
Debenture

27. Central Govt. Securities
•T-Bill
•Call Money
•CD
•CP
Government Securities Market (G-Sec Market):
It consists of central and state government securities. It means that, loans are being taken by the central and state government. It is also the
most dominant category in the India debt market.
Features
of
Government
Securities
Debt
Instru
-ment
Issued
By
RBI
Maturity
Fixed
rate
Of
Interest
Issued
at
Face
Value
Liquidity
Safety
investment
Exemption
on
Tax
IIs are the
main
participa
nt
Features
of
Government
Securities

29.  Certificates of Deposit
 CDs are short-term borrowings issued by all scheduled banks and are freely
transferable by endorsement and delivery.
 Introduced in 1989
 Maturity of not less than 7 days and maximum up to a year. FIs are allowed
to issue CDs for a period between 1 year and up to 3 years
 Subject to payment of stamp duty under the Indian Stamp Act, 1899
 Issued to individuals, corporations, trusts, funds and associations
 They are issued at a discount rate freely determined by the market/investors
 Commercial Papers
 Short-term borrowings by corporates, financial institutions, primary dealers
from the money market
 Can be issued in the physical form (Usance Promissory Note) or demat form
 Introduced in 1990
 When issued in physical form are negotiable by endorsement and delivery
and hence, highly flexible
 Issued subject to minimum of Rs. 5 lacs and in the multiple of Rs. 5 lacs
after that
 Maturity is 7 days to 1 year
 Unsecured and backed by credit rating of the issuing company
 Issued at discount to the face value

30. Call money market
 Is an integral part of the Indian money market where day-to-day surplus funds (mostly of
banks) are traded.
 The loans are of short-term duration (1 to 14 days). Money lent for one day is called ‘call
money’; if it exceeds 1 day but is less than 15 days it is called ‘notice money’. Money lent
for more than 15 days is ‘term money’
 The borrowing is exclusively limited to banks, who are temporarily short of funds.
 Call loans are generally made on a clean basis- i.e. no collateral is required
 The main function of the call money market is to redistribute the pool of day-to-day surplus
funds of banks among other banks in temporary deficit of funds
 The call market helps banks economise their cash and yet improve their liquidity
 It is a highly competitive and sensitive market
 It acts as a good indicator of the liquidity position
Call Money Market Participants
 Those who can both borrow and lend in the market – RBI , banks and primary dealers
 Once upon a time, select financial institutions viz., IDBI, UTI, Mutual funds were allowed in
the call money market only on the lender’s side
 These were phased out and call money market is now a pure inter-bank market (since
August 2005)
Bill Market
 Treasury Bill market- Also called the T-Bill market
 These bills are short-term liabilities (91-day, 182-day, 364-day) of the Government of India
 It is an IOU of the government, a promise to pay the stated amount after expiry of the stated period
from the date of issue
 They are issued at discount to the face value and at the end of maturity the face value is paid
 The rate of discount and the corresponding issue price are determined at each auction
 RBI auctions 91-day T-Bills on a weekly basis, 182-day T-Bills and 364-day T-Bills on a fortnightly
basis on behalf of the central government

31. Players in Government Securities
 Central & State Government
 Commercial Banks, RBI, SBI, Cooperative Banks.
 Specialized Financial Institutions Like:- IDBI, IFCI,
SFC etc.
 Joint Stock companies.
 Non Banking Financial Companies.
 Investing institutions like:- LIC, GIC & UTI.
 Provident Funds
 Individuals (w.e.f. Dec., 2001)

32. Bond Market:

33.  It consists of Financial Institutions bonds, Corporate
bonds and debentures and Public Sector Units
bonds. These bonds are issued to meet financial
requirements at a fixed cost.
Features of Bond Instruments
1. Higher Risky
2. High Rate of Return
3. Taxable
 Bonds issued by corporations or government are
usually taxable
 Bonds issued by state governments or
municipalities are usually exempt from tax
4. Maturity
5. INTEREST RATES

34. Secondary Market For Debt Market
Trading Platform
Trading System
Trading Settlement
Clearing House

37. PRIMARY ISSUANCE PROCESS
State government securities
Issuance process of T.bills
Issue in conversion of T.bills
Issue of securities through tap sale
Issue of securities with Pre announced Coupon Rate
Issue Through Auction

38. Market Segment
Primary market Secondary market

39. PRIMARY MARKET
 It is that market in which shares, debentures and
other securities are sold for the first time for
collecting long term capital.
 This market is concerned with new issues.
Therefore the primary market is also called “new
issue market”.
 In this market, the flow of funds is from savers to
borrowers. Hence, it helps directing in the capital
formation of the country

40. Secondary Market Segments
Secondary market
NSE BSE
BSE deal with debt marketNSE deal with debt market
Wholesale debt market
Retail debt market

41. Clearing and Settlement
 Clearing
 Clearing is all steps of the post-trade processes apart from the final settlement — i.e. apart from the final payment and
change in ownership.
 Settlement
 Settlement is the last step in the post-trade process. Settlement is a two way process which involves transfer of funds
and securities on the settlement date.
Salient features of Clearing and Settlement in Debt Market segment
 Clearing and settlement of all trades in the Debt Market shall be subject to the Bye Laws, Rules and Regulations of
the Capital Market Segment and such regulations, circulars and requirements etc. as may be brought into force from
time to time in respect of clearing and settlement of trading in Debt Market (Government securities).
 Settlement in Debt Market is on T + 2 Rolling basis viz. on the 2nd working day. For arriving at the settlement day all
intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. Typically
trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on.
 NSCCL shall compute member obligations and make available reports/data by T+1.
 The existing clearing bank accounts shall be used for funds settlement.
STRIPS
 Separate Trading of Registered Interest and Principal Securities (STRIPS)
 It is that whose interest and principal portions of the security have been separated, or "stripped"; these may then be
sold separately in the secondary market.
 Example--a Treasury note with 10 years remaining to maturity consists of a single principal payment, due at maturity,
and 20 interest payments, one every six months over a10 year duration. When this note is converted to STRIPS form,
each of the 20 interest payments and the principal payment becomes a separate security.
Features of STRIPS
 STRIPS let investors hold and trade the individual interest and principal components of eligible Treasury notes and
bonds as separate securities.
 STRIPS are popular with investors who want to receive a known payment on a specific future date.
 It is issued at discount.
 These are zero coupon instrument with single maturity value.