The Reserve Bank of India (RBI), following consultations with State Governments and market participants, has introduced the facility of Separate Trading of Registered Interest and Principal of Securities (STRIPS) in State Development Loans (SDLs), effective May 29, 2025.
Eligible Securities:
Fixed coupon SDLs with: Residual maturity up to 14 years,Minimum outstanding amount of ₹1,000 crore, SLR eligibility and transferability.
How to Place Requests:
SGL Account Holders: Directly through RBI’s e-Kuber system.
Gilt Account Holders: Through custodians maintaining CSGL accounts with RBI.
Nomenclature:
STRIPS in SGS will follow the same ISIN and naming conventions as those used for Central Government STRIPS.
Applicability of Existing Guidelines:
Provisions from earlier RBI circulars (Oct 2009, Apr 2018, Mar 2010) will apply mutatis mutandis to SGS STRIPS.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12867&Mode=0
About the Author
