New Delhi: The Reserve Bank today allowed trading in power bonds that were issued by states to the central public sector undertakings and are set to mature in October 2012 and April 2013.

"RBI has permitted transfer of/trading in the power bonds maturing on October 1, 2012 and April 1, 2012, issued by various states to central public sector undertakings in terms of tripartite agreement among 27 state governments, Ministry of Power, and the Reserve Bank of India under one time settlement scheme for dues of state electricity boards with effect from April 1, 2008," the apex bank said in a statement.

As per the tripartite agreement, these bonds were envisaged to be released for trading in a phased manner, it said. Eight bonds set to mature staring from October 1, 2008 till April 1, 2012 have already been made tradable.

Source : PTI