All Market Participants
Stripping/Reconstitution of Government Securities
Please refer to paragraph 7 of
the Statement on Regulatory and Developmental
Policies announced on April 5, 2018 regarding review of the
mechanism of the Separate Trading of Registered Interest and Principal of
Securities (STRIPS) which was introduced w.e.f. April 1, 2010.
2. With a view to meeting the
diverse needs of investors and making Separate Trading of Registered
Interest and Principal of Securities (STRIPS) more aligned with market
requirements, it has been decided to revise the existing guidelines.
Accordingly, it is proposed to remove the restrictions on the securities
eligible for Stripping/Reconstitution as well as the requirement of
authorization of all requests for Stripping/Reconstitution by Primary
3. In view of the above, in
partial modification of the existing instructions issued vide our
Notification IDMD.1762/2009-10 dated October 16, 2009 read with our circular IDMD.DOD.07/11.01.09/2009-10 dated March 25,
2010, it is specified as under:
(a) All fixed coupon securities
issued by Government of India, irrespective of the year of maturity, are
eligible for Stripping/Reconstitution, provided that:
(i) The securities are reckoned
as eligible investment for the purpose of Statutory Liquidity Ratio (SLR).
(ii) The securities are
Placing of Requests
(b) Market participants, having
an SGL account with RBI can place requests directly in e-kuber for
(c) Requests for
stripping/reconstitution by Gilt Account Holders (GAH) shall be placed with
the respective Custodian maintaining the CSGL account, who in turn, will
place the requests on behalf of its constituents in e-kuber.
4. The notification to the above
effect dated April 25, 2018 is enclosed.
Chief General Manager
Enc: As above