What are G-SEC Strips?
Curated by isolating each cash flow from a Government security!
G-SEC STRIPS let investors hold and trade the individual interest and principal components of eligible Government Treasury notes and Government Bonds as separate securities
Created by isolating each of the cash flows from a Government security.
What do we get post stripping?
Coupon Strips
Multiple Coupon G-STRIPS with each coupon flow maturity having a unique ISIN.
Principal Strips
One Principal G-STRIP with principal flow of the original security having a distinct ISIN.
Revised guidelines announced by RBI on May 3, 2018 All fixed rate, transferable, SLR eligible G-sec can now be STRIPped!
With G-STRIPS, investors can now get Zero Coupon Bond G-secs across the full maturity spectrum of G-secs issued by Government of India.
- A single cash flow from a STRIP means no coupons in between
- No re-investment risk
Pricing of G-STRIPS
Each G-STRIP to be priced as a ZCB.
Transactions take place at the yield (to 4 decimals) agreed by the buyer and the seller.
Yield quoting convention
MONEY MARKET
For less than 6 months
SEMI ANNUAL
For greater than 6 months
Price arrived at by discounting the single cash flow of the G-STRIP at the agreed yield. Price expressed as Discounted Value per Rs. 100 Face Value.
Advantages of G-STRIPS
Investment in Bonds can be done in a few easy steps with Quick KYC, Bond Selection and a convenient payment gateway.
HIGHEST SAFETY
More secured than AAA Corporate Bond
OPTIONS
Variety of tenure options available
BETTER RETURNS
Than FD and tax-adjusted AAA corporate bonds
LOW MINIMUM INVESTMENT
Lowest Minimum investment starting at Rs 1000
CASHFLOW FROM GOVERMNENT SECURITY
Created by isolating each of the cash flows
NO INVESTMENT RISK
No reinvestment risk
Customer Review
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