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    Question

    As per RBI’s new guidelines, what is the minimum

    outstanding amount required for state government bonds to be eligible for STRIPS trading?    
    A ₹5 billion Correct Answer Incorrect Answer
    B ₹8 billion Correct Answer Incorrect Answer
    C ₹10 billion Correct Answer Incorrect Answer
    D ₹15 billion Correct Answer Incorrect Answer
    E ₹12 billion Correct Answer Incorrect Answer

    Solution

    Explanation:    
    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.    

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