RBI Amends STRIPS Guidelines: Expands Eligibility for Stripping of Government Securities

The Reserve Bank of India (RBI) expanded the eligibility criteria for 'stripping' and 'reconstituting' government securities (STRIPS), allowing more participants in this market segment. The change aims to enhance liquidity and investment options in government debt instruments, making it easier for a wider range of investors, including foreign portfolio investors, to manage their cash flows and investment strategies in the bond market.