In June 2025, RBI allowed STRIPS trading to state government bonds meeting certain residual maturity and outstanding amount requirements . Which of the following is the correct full form of STRIPS?  

STRIPS stands for Separate Trading of Registered Interest and Principal of Securities . These are securities created by convert ing a bond’s periodic coupon payments and the principal into individu al l zero-coupon instruments. Each of these can be traded separately, allowing investors to buy specific cash flows instead of the entire bond. For example, a 10-year SDL offering annual interest of Rs 70 and repaying Rs 1, 000 in principal at maturity could be split into eleven separate securities - ten   interest payments and one principal payment.