REC Issues ₹500 Cr Through Tokenised Corporate Bonds, 8x Oversubscribed
REC Ltd, a Maharatna company under India's Ministry of Power, has successfully executed India's first pilot issuance of tokenized corporate bonds. The ₹500 crore issuance, conducted under the Securities and Exchange Board of India’s (SEBI) regulatory sandbox, achieved an 8x oversubscription with total bids reaching ₹796 crore. By utilizing a permissioned distributed ledger under the Demat 2.0 initiative, the process enabled atomic Delivery-versus-Payment (DvP) settlement. This technological shift allowed for the pay-in, allotment, and listing of the bonds to occur within a single day. The bonds carry a coupon rate of 7.30% per annum with a tenor of one year and nine months and are listed on both the NSE and BSE. This milestone demonstrates the integration of distributed ledger technology with existing regulatory frameworks to reduce settlement risks and operational friction. The success of this pilot signals a significant evolution in Indian debt markets, highlighting the potential for digital infrastructure to enhance market efficiency and transparency.
- REC Ltd issued ₹500 crore in tokenized corporate bonds via SEBI's regulatory sandbox.
- The issuance was 8x oversubscribed, attracting ₹796 crore in total bids.
- Tokenization enabled same-day settlement, allotment, and listing on NSE and BSE.
- The bonds feature a 7.30% coupon rate with a one-year and nine-month tenor.
REC Ltd is a Maharatna public sector undertaking under India's Ministry of Power, primarily focused on financing power sector projects. The Demat 2.0 initiative represents a regulatory effort by SEBI to modernize capital market infrastructure by transitioning to permissioned distributed ledgers for tracking securities ownership. This framework aims to improve settlement speed and transparency while maintaining institutional compliance.