5 hrs ago

SEBI Plans AI Oversight Toolkit and Tokenised Bond Pilot

India’s securities regulator, SEBI, plans to use a global toolkit to supervise artificial intelligence.

The toolkit is meant to help manage risks from AI and create clearer rules for its use.

SEBI and the Reserve Bank of India also launched a project called Demat 2.0.

This project connects digital securities with digital money from the central bank.

It aims to let securities and payments settle at the same time.

Smart contracts could automatically make interest payments and repay bonds.

Three companies have already issued digital corporate bonds worth Rs 1,025 crore.

The first stage is only for large institutional investors.

Retail investors may be included later.

Key facts

AI oversight: SEBI is working to implement the International Organization of Securities Commissions’ supervisory toolkit for AI.
New platform: Demat 2.0 was launched by SEBI and the Reserve Bank of India.
Settlement technology: The platform is designed to enable atomic settlement using tokenised securities, wholesale CBDC and smart contracts.
Market interface: Demat 2.0 will connect to the RBI’s wholesale CBDC through the Unified Market Interface.
Pilot size: Tokenised corporate bonds worth an aggregate Rs 1,025 crore have been issued.
Pilot issuers: REC Limited issued Rs 500 crore, L&T Limited Rs 500 crore and IIFL Rs 25 crore.
Investor access: The initial pilot is restricted to institutional investors, with retail investors expected to be included later.

financialexpress.com · 5 hrs ago