Archive · 12 Jun 2025
RBI to Introduce STRIPS for State Government Securities
The Reserve Bank of India (RBI) is starting a new program called STRIPS for state government bonds.
This allows investors to break down bonds into separate parts: one for interest payments and another for the principal.
These parts can then be traded individually.
This is similar to what the RBI already does with central government bonds and helps investors manage their investments.
If you have an SGL account, you can request this service through RBI's e-Kuber system.
RBI is introducing Separate Trading of Registered Interest and Principal of Securities (STRIPS) in State Government Securities (SGS).
STRIPS converts SGS coupon payments into tradable zero-coupon securities.
SGS with up to 14 years' maturity and a minimum outstanding of ₹1,000 crore are eligible.
SGS will also be eligible for reconstitution, which is the reverse of stripping.
Market participants can request stripping/reconstitution through the e-Kuber system.
- Who
- The Reserve Bank of India (RBI).
- What
- RBI is introducing Separate Trading of Registered Interest and Principal of Securities (STRIPS) in State Government Securities (SGS).
- When
- The news was published on June 12, 2025.
- Where
- India.
- Why
- To introduce a new way to trade state government bonds.
- What
- Introduction of STRIPS in State Government Securities
- Type of Securities
- Fixed coupon State Government Securities (SGS)
- Maturity
- Up to 14 years
- Minimum Outstanding
- ₹1,000 crore
- Process
- Stripping/Reconstitution
- System
- e-Kuber