Sebi's Demat 2.0 to debut next week with REC's tokenised bond pilot
The Securities and Exchange Board of India (SEBI) is preparing to launch its Demat 2.0 initiative next week, marking a significant shift in the country's financial market infrastructure. This debut will feature a pilot program involving REC Limited, which is set to issue India's first tokenised bond. The transaction will utilize the Reserve Bank of India's Central Bank Digital Currency (CBDC) for settlement, aiming to streamline the issuance and trading process. By integrating blockchain-based tokenisation with digital currency, the initiative seeks to reduce settlement cycles and enhance transparency in debt markets. This move represents a major regulatory endorsement of distributed ledger technology within the Indian capital markets. The successful execution of this pilot could pave the way for broader adoption of tokenised securities across the nation. Such developments are critical for the RWA market as they demonstrate how sovereign regulators and state-owned enterprises are actively modernizing traditional financial instruments through blockchain integration.
- SEBI launches Demat 2.0 initiative next week to modernize Indian capital market infrastructure.
- REC Limited will issue India's inaugural tokenised bond as part of the pilot program.
- Settlement for the tokenised bond will be conducted using the Reserve Bank's CBDC.
- The initiative aims to improve settlement efficiency and transparency for domestic debt instruments.
SEBI is the primary regulatory body for the securities market in India, responsible for protecting investor interests and promoting the development of the market. REC Limited, formerly Rural Electrification Corporation, is a public infrastructure finance company under the Ministry of Power that provides long-term loans for power sector projects. Demat 2.0 represents an evolution of the existing dematerialization system, moving from digital book-entry records toward blockchain-based tokenised assets.