SEBI Initiates Tokenised Corporate Bond Pilot Under Demat 2.0
The Securities and Exchange Board of India has launched a pilot project for tokenising corporate bonds, aiming to enhance market efficiency and security.
SEBI's pilot project for tokenised corporate bonds began on September 10.
Three issuers have already participated in the pilot, supported by major financial institutions.
The initiative aims to integrate securities, settlement, and servicing using advanced technologies.
The Securities and Exchange Board of India (SEBI) has officially launched a pilot project for the tokenisation of corporate bonds as part of its Demat 2.0 initiative on September 10. This project aims to create a more integrated and programmable infrastructure for the securities market, marking a significant advancement in financial technology in India.
During the Global Fintech Fest 2026, SEBI Chairman Tuhin Kanta Pandey announced that three issuers have already begun issuing tokenised corporate bonds under this pilot. The initiative is being implemented in collaboration with key depositories such as CDSL and NSDL, and is supported by stock exchanges including BSE, MSEI, and NSE, along with various banks, issuers, investors, and regulatory bodies.
The pilot project will investigate the potential of distributed ledger technology (DLT) to enhance transaction security and settlement processes. By enabling faster settlements and automating certain aspects of asset servicing, the initiative seeks to create a more efficient market environment. Pandey emphasized the broader significance of this project, stating that it aims to explore a market architecture where securities, settlements, and servicing can be more seamlessly integrated.
As global financial markets increasingly adopt DLT and tokenisation, SEBI's pilot reflects a growing trend towards improving trading and settlement processes. Pandey noted that while technology has significantly contributed to the growth of India's securities market, it also introduces new risks. He highlighted the need for resilient infrastructure capable of identifying emerging risks as markets evolve.
Looking ahead, SEBI aims to enhance its regulatory supervision through the use of supervisory technology (SupTech). This approach will leverage data analytics and artificial intelligence to detect patterns and risks that traditional methods may overlook. Pandey pointed out the importance of balancing innovation with risk management, especially as advanced technologies like quantum computing and artificial intelligence become more prevalent in financial markets.
