REC Limited: Issues India’s First Tokenized Corporate Bonds
REC Limited has successfully executed India's first pilot issuance of tokenized corporate bonds under the Securities and Exchange Board of India (SEBI) Regulatory Sandbox Framework. The issuance, valued at ₹500 Crore, attracted significant market demand with a total book build of ₹796 Crore, representing an 8x oversubscription. These bonds carry a coupon rate of 7.30% per annum with a tenor of one year and nine months. By utilizing distributed ledger technology and atomic Delivery-versus-Payment (DvP) settlement, the pilot achieved same-day pay-in, allotment, and listing on the NSE and BSE. This initiative, part of the broader Demat 2.0 project, demonstrates the potential for shared-ledger transparency to reduce settlement risks and operational friction in capital markets. The project involved close collaboration between SEBI, the Reserve Bank of India, and various market infrastructure institutions. This milestone marks a transformative shift toward modernized, digital-first debt market infrastructure in India while maintaining strict regulatory compliance.
- REC Limited issued ₹500 Crore in tokenized corporate bonds via SEBI's Regulatory Sandbox.
- The pilot achieved 8x oversubscription with a total book build of ₹796 Crore.
- Atomic DvP settlement enabled same-day pay-in, allotment, and listing on NSE and BSE.
- Demat 2.0 utilizes permissioned distributed ledgers to enhance transparency and reduce settlement risk.
REC Limited is a Maharatna Central Public Sector Enterprise under the Indian Ministry of Power, primarily focused on financing power sector projects. The SEBI Regulatory Sandbox Framework allows entities to test innovative financial products and technologies in a controlled environment before full-scale market deployment. Demat 2.0 represents an evolution of India's electronic securities system, integrating distributed ledger technology to modernize ownership tracking and settlement processes.