Archive · 10 Sep 2026
SEBI Launches Demat 2.0 Pilot for Tokenised Corporate Bonds
India is testing a new way to handle corporate bonds called Demat 2.0.
A corporate bond is a way for a company to borrow money from investors.
In this pilot, each bond is represented by a digital token on a shared electronic ledger.
The bond’s legal rights and features remain the same as those of a regular bond.
The system is connected to the Reserve Bank of India’s digital currency for large financial institutions.
This could allow the bond and the payment to move at the same time.
Computer programs called smart contracts can automatically send interest and redemption payments.
Three companies have issued tokenised bonds worth ₹1,025 crore so far.
Retail investors cannot join the initial phase, but SEBI plans to include them later.
SEBI launched Demat 2.0, a pilot using distributed ledger technology to issue, hold, trade and settle tokenised corporate bonds.
The pilot connects with the Reserve Bank of India’s wholesale CBDC through the Unified Market Interface.
Atomic settlement is designed to move the bond and payment simultaneously, while smart contracts can automate interest and redemption payments.
REC, L&T and IIFL have issued tokenised bonds worth ₹1,025 crore in total during the pilot’s first phase.
Retail investors are excluded initially, while new UPI features called Tap & Pay and MyUPI were also introduced.
- Who
- The Securities and Exchange Board of India launched Demat 2.0 with the Reserve Bank of India; the announcement involved RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey.
- What
- A pilot for issuing, holding, trading and settling corporate bonds as digital tokens on distributed ledger technology was launched.
- When
- The announcement was made on a Thursday at the Global Fintech Fest; REC issued its bonds on 7 September 2026, while L&T and IIFL issued theirs on 9 September.
- Where
- The launch was announced at the Global Fintech Fest in Mumbai, within India’s regulated financial-market infrastructure.
- Why
- The pilot aims to make bond transactions and servicing faster, more efficient and less error-prone through atomic settlement and smart contracts.
- Project
- Demat 2.0
- Technology
- Distributed Ledger Technology and smart contracts
- Settlement
- Atomic settlement, allowing the bond and money to move simultaneously
- CBDC connection
- Linked to the Reserve Bank of India’s wholesale CBDC through the Unified Market Interface
- Issuers so far
- REC, L&T and IIFL
- Total issued
- ₹1,025 crore
- Pilot access
- Institutional participation initially; retail investors are planned for a later phase
