Politics · India Bureau
Sebi launches bond tokenisation pilot to streamline corporate debt markets
Market regulator Sebi, working with the Reserve Bank of India, will test blockchain-based technology to accelerate bond settlements and automate payment processes. The initiative aims to deepen India's corporate bond repo market and improve operational efficiency.
LSN India ·
The Securities and Exchange Board of India (Sebi) is moving forward with a pilot programme to tokenise corporate bonds using distributed ledger technology, in collaboration with the central bank. The project will explore how shared-ledger systems can expedite settlement cycles, reduce intermediaries, and streamline bond-servicing operations in India's debt markets.
Under the pilot framework, tokenised bonds will enable faster settlement compared to conventional processes, while automated mechanisms will handle coupon payments and other bond-servicing events without manual intervention. This technological shift is expected to enhance transparency and reduce operational friction in corporate bond transactions.
The initiative reflects regulators' push to modernise India's bond market infrastructure and encourage deeper participation in the corporate bond repo segment. By lowering settlement times and operational costs, tokenisation could attract more institutional investors and improve market liquidity in the corporate debt space.
Sebi and the RBI have been exploring blockchain applications across financial markets to enhance efficiency and risk management. The bond tokenisation pilot represents a significant step toward digitalising India's debt infrastructure, potentially positioning the country as a regional leader in fintech-enabled bond markets.