Business · India Bureau
Sebi pilots blockchain-based system for corporate bond trading
India's markets regulator has launched a pilot programme to test tokenised corporate bonds using distributed ledger technology, with three companies having already issued securities worth Rs 1,025 crore under the initiative.
LSN India ·
The Securities and Exchange Board of India (Sebi) has initiated a pilot scheme to modernise the corporate bond market through tokenisation using blockchain and related distributed ledger technologies. The programme, branded as Demat 2.0, represents a significant step toward digitising India's fixed-income securities infrastructure.
Three companies have participated in the initial phase, collectively issuing tokenised bonds valued at Rs 1,025 crore. These issuances mark the first real-world deployment of the technology within India's regulatory framework, demonstrating investor appetite for digital securities.
The pilot programme will comprehensively test the full lifecycle of tokenised bonds, including issuance processes, settlement mechanisms, and secondary market trading. By deploying distributed ledger technology, the initiative aims to streamline operations that traditionally involve multiple intermediaries, potentially reducing settlement timelines and operational costs.
Sebi's move aligns with global trends toward digitising capital markets infrastructure. The regulator is evaluating how blockchain-based systems can enhance transparency, reduce counterparty risks, and improve market efficiency while maintaining robust investor protection standards.
The outcomes of the pilot will likely inform future policy decisions regarding broader adoption of tokenisation across India's securities markets. Successful demonstration of the technology could pave the way for wider implementation across different asset classes and market segments.