What's the story

Investment banking giant Nomura Holdings has launched an internal investigation into its Indian fixed-income business, amid allegations of inflated profits in recent years. The probe, led by the bank's compliance department, is focused on how trades in Strips were valued. Strips or Separate Trading of Registered Interest and Principal of Securities are bonds created by separating the principal and coupon payments of Indian sovereign securities.

Market impact

Nomura's role in India's sovereign debt market

The investigation is particularly significant as Nomura is a major player in the Strips market, a niche but rapidly growing segment of India's $1.3 trillion sovereign debt market. The move comes amid rising concerns over this segment, which has been increasingly targ

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