Reserve Bank of India has permitted trading of state government bonds in STRIPS. This format allows separating and selling principal and coupon payments. The decision follows consultations with state governments and Union Territories. STRIPS trading has been allowed for central government securities since 2010. Bonds with up to 14 years maturity and ₹1,000 crore outstanding are eligible.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets