Sebi to launch Demat 2.0 next week with REC's tokenised bond debut

The Securities and Exchange Board of India (Sebi) is set to introduce Demat 2.0, an enhanced version of its digital securities infrastructure, beginning next week. The launch represents a major technological advancement in how securities are held, transferred, and settled in India's financial markets.

REC Limited, a government-backed non-banking financial company, will lead the initiative by issuing India's first tokenised bond through the new platform. The bond offering will leverage CBDC-based settlement, utilizing the digital rupee to facilitate transactions. This pilot programme demonstrates the practical application of blockchain technology and central bank digital currency in India's debt markets.

Demat 2.0 is designed to enhance the efficiency and security of dematerialized securities management. The upgraded system aims to streamline settlement processes, reduce counterparty risks, and provide a more seamless experience for market participants including investors, brokers, and custodians.

The introduction of tokenised securities and CBDC settlement marks a transformative phase in India's financial infrastructure. Such technological innovations are expected to position India's capital markets competitively while strengthening the underlying architecture for future financial transactions.

The pilot programme with REC's bond offering will provide crucial insights into the operational dynamics of tokenised securities on the new platform, potentially paving the way for broader adoption across India's debt and equity markets.