SEBI, RBI working on bond tokenisation project; pilot to test faster settlement
WTM Amarjeet Singh says the project will examine simultaneous transfer of securities and automated coupon payments; consultation on a wider bond distribution framework soon
The Securities and Exchange Board of India (SEBI) is collaborating with the Reserve Bank of India on a pilot project focused on tokenising corporate bonds, aiming to enhance settlement efficiency and reduce costs, according to SEBI Whole-Time Member Amarjeet Singh. The pilot will also explore automated coupon payments and other servicing events through smart contracts.
Singh clarified that this initiative is not about establishing a separate trading market, but rather about simplifying, speeding up, and improving the efficiency of the existing bond market. SEBI is also examining the potential to strengthen the corporate bond repo market, which currently sees daily volumes of around ₹6,000 crore, contributing less than 1 percent of total repo volumes.
Additionally, SEBI is developing a formal market-making framework to improve liquidity in the secondary bond market, as outlined in the Union Budget 2026-27. The regulator is also working on a distribution framework to broaden access to corporate bonds, allowing online bond platform providers to appoint certified channel partners and incorporating existing mutual fund distributors.
SEBI plans to issue a consultation paper on the matter soon. The regulator is also planning to implement a risk disclosure system, including a graded risk-o-meter for bonds, to make the corporate bond market deeper, more liquid, diversified, accessible, and trusted.
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Also reported by 1 other outlet
- SEBI to launch pilot for bond tokenisation; eases FPI onboarding process indianexpress.com
