The Reserve Bank of India and the Securities and Exchange Board of India have jointly introduced a pilot programme under the banner of Demat 2.0. This initiative is des…
RBI and SEBI Pilot Tokenised Bonds
The Reserve Bank of India and the Securities and Exchange Board of India have jointly introduced a pilot programme under the banner of Demat 2.0. This initiative is designed to test the issuance and settlement of tokenised corporate bonds. The development was reported on 22 October 2026. Tokenisation here refers to representing a bond as a digital token on a distributed ledger, rather than relying solely on conventional depository records. The pilot marks a coordinated effort by the central bank and the markets regulator to examine how such instruments might function within India's existing securities infrastructure.
Why It Matters for Businesses
For companies that issue or hold corporate debt, the pilot signals a possible shift in how bonds are recorded, transferred and settled. Tokenised bonds could reduce settlement timelines and intermediaries, which may lower transaction costs over time. For compliance teams, the key question is how tokenised holdings will be treated under the Depositories Act, the Companies Act and Sebi's issue and listing regulations. Tax treatment is equally relevant: characterisation of gains, withholding on interest, and stamp duty implications for on-ledger transfers are areas that will need clarity. Legal enforceability of token ownership, insolvency treatment of tokens, and audit trails for statutory records are further considerations. Entities with treasury operations, debt capital market exposure or depository participant relationships should track whether the pilot produces any change to record-keeping obligations.
What to Watch Next
Readers should monitor the scope of the pilot, including which issuers and bond categories are included, and whether participation is voluntary or structured. Watch for any interim guidance from the RBI or Sebi on settlement finality, investor protection and grievance redressal. Also track whether the pilot leads to amendments in depository or securities regulation…
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