Indian insurers are urging the government to introduce zero-coupon bonds as new sovereign debt instruments to expand their investment options. The Reserve Bank of India is in talks with the Finance Ministry about this request.
Insurers believe that these financial instruments will not only diversify their investment strategies but also align with their long-term liabilities. Sources familiar with the discussions indicate that this initiative is part of a broader effort to strengthen the financial framework for insurance providers in India, ensuring they can effectively navigate the changing economic landscape.