Sebi Launches Demat 2.0 Pilot for Tokenised Corporate Bonds

Sebi has unveiled Demat 2.0, a pilot initiative aimed at modernising India's securities infrastructure through tokenisation of corporate bonds using blockchain-based distributed ledger technology. According to the announcement, settlement will occur via wholesale e-rupee, marking a significant step toward digital financial infrastructure in India. The pilot phase has already attracted participation from three prominent issuers: REC, L&T, and IIFL, which collectively raised Rs 1,025 crore. This early traction suggests institutional confidence in the tokenised bond framework.

The initiative holds broader significance for India's debt capital markets and fintech ecosystem. Tokenisation of corporate bonds could enhance market efficiency by reducing settlement timelines, lowering operational costs, and improving transparency through immutable ledger records. The integration of wholesale e-rupee settlement aligns with the Reserve Bank of India's ongoing digital currency projects. Future phases of Demat 2.0 are expected to enable secondary market trading functionality and extend access to retail investors, potentially democratising corporate bond investments. For traders and institutional investors, this development signals India's commitment to upgrading settlement infrastructure and modernising debt markets. Success in pilot phases could establish a template for broader adoption, influencing how fixed-income securities are issued, traded, and settled in the Indian financial system for years to come.

Source: Markets-Economic Times