CURRENT AFFAIRS

Detailed explanation-1: -According to the gazette notification, “zero coupon zero principal instrument” is an instrument issued by a not-for-profit organisation that will be registered with the social stock exchange segment of a recognised stock exchange in accordance with the Securities and Exchange Board of India (Sebi) regulations.

Detailed explanation-2: -Federal agencies, municipalities, financial institutions and corporations issue zero coupon bonds. One of the most popular zeros goes by the name of STRIPS (Separate Trading of Registered Interest and Principal Securities).

Detailed explanation-3: -T-Bills, also known as zero coupon bonds, are issued by the RBI on the behalf of the cental government.

Detailed explanation-4: -As per the notification, the central government has declared “zero coupon zero principal instruments” as securities for the purposes of the Securities Contracts (Regulation) Act, 1956. In September 2021, Sebi’s board cleared a framework for SSE for fund raising by social enterprises.

Detailed explanation-5: -Treasury bills are zero coupon securities and pay no interest.