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[Objective]Peptides of marine origin having a myriad of bioactive potential mainly antioxidative and antihypertensive functions can be used as functional ingredient in food formulations to impart health benefits and to improve shelf life of foods.Indian squid (Loligo duvauceli) is a marine cephalopod possessing distinctive protein structure with different amino acid composition unlike marine fish,and is expected to release unique functional peptides on hydrolysis.We aim to characterize the peptides derived from Indian squid for their different bioactive potential and to examine their stability and safety as functional food supplement by encapsulation.