1 week ago
SEBI Plans Bond Tokenisation Pilot, Eases FPI Onboarding
India’s markets regulator, SEBI, wants to test a new way to record bond transactions digitally.
The test may use a shared computer ledger so money and bonds can move at the same time.
It will also examine whether computer programs can automatically make coupon payments.
SEBI said this would improve the current bond market rather than create a new market.
The regulator is also considering a simple, color-coded tool to show the risk of debt investments.
It plans to create certified distributors to help more people access corporate bonds.
Separately, foreign investors can now send custodians digitally signed Powers of Attorney.
This should make it faster for those investors to complete registration.
SEBI plans to launch a near-term pilot examining whether bonds can be tokenised on a shared ledger.
The pilot will assess simultaneous transfers of securities and money, automated coupon payments, and other smart-contract servicing events.
SEBI said the project is intended to improve the existing bond market, not create a separate trading venue.
The regulator is consulting on a color-coded Credit Risk-o-Meter and plans certified fixed-income channel partners to expand bond distribution.
SEBI immediately allowed foreign portfolio investors to submit digitally signed Powers of Attorney, removing notarisation, apostillisation, and consularisation requirements.
- Who
- The Securities and Exchange Board of India (SEBI), with coordination from the Reserve Bank of India, and foreign portfolio investors.
- What
- SEBI announced a planned bond-tokenisation pilot and immediately simplified FPI onboarding by accepting digitally signed Powers of Attorney.
- Where
- The pilot was discussed at an event in Mumbai; the measures apply to India’s securities market.
- When
- The pilot is planned for the near future; the digitally signed Power of Attorney measure took effect immediately and was announced on Thursday.
- Why
- To make bond settlement more efficient, reduce reconciliation costs, improve investor protection and market access, and ease compliance for foreign portfolio investors.
Key facts
- Bond pilot
- SEBI plans to test bond tokenisation in the near future.
- Technology under review
- The pilot will examine shared-ledger settlement, automated coupon payments, and other servicing events through smart contracts.
- Market scope
- SEBI said the initiative will examine the existing bond market rather than create a separate trading market.
- Investor protection
- SEBI is consulting on a standardized, color-coded Credit Risk-o-Meter mapped to existing credit-rating symbols.
- Bond distribution
- SEBI plans a framework for fixed-income channel partners certified through the National Institute of Securities Markets.
- FPI onboarding
- FPIs may submit digitally signed Powers of Attorney to custodians.
- Documentation change
- The new process removes the need for notarisation, apostillisation, or consularisation of Powers of Attorney.
Quotes
SEBI Whole‑Time Member Amarjeet Singh
SEBI regulator and Whole‑Time Member
“The idea is, can a shared ledger be used to enable simultaneous transfer of the security and money, thereby making settlement more efficient and reducing reconciliation costs. The pilot is expected to examine this aspect along with the feasibility of automated coupon payments and other servicing events through smart contracts.”
indianexpress.com
“This measure, which comes into effect immediately, eliminates the need for notarisation, apostillisation or consularisation of Power of Attorney, thereby reducing the overall time taken for FPI onboarding and improving ease of doing business for FPI applicants.”
indianexpress.com
Sources
Related news
SEBI Eases FPI Onboarding With Digitally Signed Power Of Attorney
Sebi plans securities lending revamp, corporate bond tokenisation pilot
India Prepares Pilot for Tokenised Corporate Bonds
SEBI Proposes Bond Distributor Network to Expand Retail Access
Sebi to Float Consultation Paper on Corporate Bond Distribution
SEBI Proposes Distributor Model to Expand Corporate Bond Access
States Prepare Unevenly for Returning Agniveers in 2026
Sebi Suspends Corporate Capital Ventures' New Mandates Over Compliance Lapses
SEBI's Amarjeet Singh calls mutual fund distributors behavioural anchors
SEBI's Amarjeet Singh: Mutual fund growth must rest on investor trust
