Question
As per RBI’s new guidelines, what is the minimum
outstanding amount required for state government bonds to be eligible for STRIPS trading?   ÂSolution
Explanation:   Â
The RBI has extended STRIPS trading to state government bonds, aligning with central government securities. For a bond to qualify, it must have a minimum outstanding amount of ₹10 billion , be a fixed-coupon bond, and have a residual maturity of up to 14 years. STRIPS allow the principal and interest portions of bonds to be traded separately, enhancing liquidity and debt management flexibility.   Â
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