3 hrs ago
REC Launches India’s First Tokenized Corporate Bond Pilot
REC Limited tested a new way to issue corporate bonds in India.
The bonds were recorded using a digital ledger system.
Investors placed bids worth ₹796 crore, even though REC accepted ₹500 crore.
The bonds pay 7.30% interest each year and last for one year and nine months.
The issue was conducted under a Securities and Exchange Board of India regulatory sandbox.
The digital process allowed payment, allotment and listing to happen on the same day.
The bonds are listed on the National Stock Exchange of India Limited and BSE Limited.
REC Limited said the system could make bond trading faster and more transparent while keeping regulatory protections.
REC Limited issued India’s first pilot tokenized corporate bonds under the SEBI Regulatory Sandbox Framework.
The ₹500 crore issue comprised a ₹100 crore base issue and a ₹400 crore green shoe option.
Investor bids reached ₹796 crore, representing approximately eightfold oversubscription.
REC Limited accepted ₹500 crore at a 7.30% annual coupon for a one-year-nine-month tenor.
Tokenization enabled same-day pay-in, allotment and listing, with the bonds listed on NSE and BSE Limited.
- Who
- REC Limited, with participation from the Securities and Exchange Board of India, the Reserve Bank of India and market infrastructure institutions.
- What
- India’s first pilot issue of tokenized corporate bonds under the Securities and Exchange Board of India Regulatory Sandbox Framework.
- Where
- The issue was bid through the National Stock Exchange of India Limited electronic bidding platform, and the bonds were listed on the National Stock Exchange of India Limited and BSE Limited.
- When
- Why
- To test digital infrastructure, distributed-ledger technology and faster Delivery-versus-Payment settlement in India’s capital markets.
Key facts
- Issuer
- REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power
- Issue size
- ₹500 crore, comprising a ₹100 crore base issue and a ₹400 crore green shoe option
- Investor demand
- ₹796 crore in bids, or approximately eightfold oversubscription
- Accepted amount
- ₹500 crore
- Coupon and tenor
- 7.30% per annum for one year and nine months
- Settlement innovation
- Atomic Delivery-versus-Payment settlement with same-day pay-in, allotment and listing
- Listing venues
- National Stock Exchange of India Limited and BSE Limited
Quotes
Rajesh Kumar
Director (Finance) at REC
“We express our deepest appreciation to SEBI for its visionary leadership in strengthening India's capital markets through progressive regulations, active stakeholder consultation, and technology-driven reforms.”
freepressjournal.in
“The Demat 2.0 initiative and tokenisation of corporate bonds represent a landmark step in the evolution of India's debt markets.”
freepressjournal.in
Sources
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