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Securities and Exchange Board of India (SEBI) Chairman, Tuhin Kanta Pandey connected Tuesday (May 26, 2026) said the SEBI has decided to motorboat a aviator task for tokenisation of firm bonds utilizing Distributed Ledger Technology (DLT), with implementation expected to instrumentality astir six to 9 months.
Speaking to the media connected the sidelines of the CareEdge Debt Market Summit successful Mumbai, the SEBI Chairman said the marketplace regulator has initiated a aviator signifier task to analyse whether firm bonds tin beryllium traded and settled done tokenisation-based systems utilizing DLT technologies.
“This is simply a aviator task that we person decided to initiate connected usage of the DLT, the integer ledger technology, for tokenization of firm bonds,” Mr. Pandey said. According to him, the aviator task volition archetypal beryllium implemented connected a constricted standard earlier broader adoption is considered.
He stated that DLT technologies are already being utilized successful definite areas specified arsenic depositories and covenant monitoring, but SEBI present wants to measure whether the aforesaid exertion tin amended the functioning of the firm enslaved market.
Mr. Pandey said tokenisation could assistance amended liquidity successful the firm enslaved marketplace and alteration much instantaneous and automated settlements. “Once you bash that determination volition beryllium a greater anticipation of much liquidity and instantaneous autonomous settlements,” helium said.
The SEBI Chairman added that portion tokenisation offers respective benefits, regulators besides request to measure the risks linked to specified technologies, particularly aboriginal risks emerging from developments successful quantum technologies.
He noted that the regulator plans to bring unneurotic each stakeholders to physique a technological and operational model for the aviator project. Mr. Pandey clarified that firm bonds are already being traded nether existing systems and the connection is aimed astatine exploring whether DLT and tokenisation tin marque the process much efficient.
“It volition instrumentality immoderate clip arsenic I said that we person decided... But it volition instrumentality 6 to 9 months to spot assorted stages,” helium added. On firm bond-related discussions with the Reserve Bank of India [RBI], Mr. Pandey said the RBI has already issued draught guidelines related to the substance and is expected to merchandise the last model shortly.
He added that exchanges and SEBI are prepared to determination up erstwhile RBI approvals are received. “So acold arsenic our exchanges are acrophobic and SEBI is concerned, we are rather acceptable to motorboat it arsenic soon arsenic the RBI clears it,” Mr. Pandey said.
Commenting connected Taiwan’s banal marketplace capitalisation overtaking India, the SEBI Chairman said valuation trends are presently being influenced globally by beardown capitalist involvement successful artificial quality and semiconductor-related companies. He said companies linked to AI infrastructure, chips, representation systems and electronics are attracting important capitalist flows globally, starring to higher marketplace valuations successful definite countries.
Mr. Pandey noted that India’s marketplace is highly diversified, portion markets specified arsenic Taiwan are much concentrated astir a fewer large exertion companies that are captious to the planetary electronics proviso chain.
