New Delhi, May 26: The Securities and Exchange Board of India (SEBI) is exploring the use of Distributed Ledger Technology (DLT) to enable tokenisation in the corporate bond market, aiming to improve transparency, efficiency and settlement processes, SEBI Chairman Tuhin Kanta Pandey said.
The move is part of broader efforts to modernise India’s debt market infrastructure by leveraging emerging technologies such as blockchain-based systems to streamline issuance, trading and post-trade settlement of corporate bonds.
According to the regulator, DLT-based tokenisation could help reduce operational complexities, enhance record-keeping accuracy and improve real-time tracking of bond ownership, while also potentially lowering transaction costs for market participants.
Officials said the initiative is currently at the exploratory stage, with discussions focused on assessing regulatory frameworks, technology feasibility and risk management safeguards before broader implementation.
Market experts noted that tokenisation of bonds could deepen participation in India’s corporate debt market by improving accessibility and liquidity, particularly for institutional investors.
SEBI is also expected to evaluate global best practices in digital asset infrastructure as part of its ongoing review of market modernization initiatives.