Daily Current Affairs / RBI Approves STRIPS Trading for State Government Bonds to Deepen Market Access:
Category : Business and economics Published on: June 16 2025
The Reserve Bank of India has enabled state government securities to be traded as STRIPS—Separate Trading of Registered Interest and Principal of Securities—allowing investors to trade interest and principal separately. The move, finalized after consultation with states and market stakeholders, is expected to improve bond liquidity and investor participation.