Archive · 10 Sep 2026
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.
SEBI will implement the IOSCO supervisory toolkit for artificial intelligence in India’s securities market.
The toolkit is intended to strengthen risk management and create an agile AI governance framework.
SEBI and the RBI launched Demat 2.0 to support atomic settlement and automated asset servicing.
Demat 2.0 will connect tokenised securities and wholesale CBDC payments through the Unified Market Interface.
REC Limited, L&T Limited and IIFL have issued tokenised corporate bonds worth Rs 1,025 crore in the pilot.
- Who
- The Securities and Exchange Board of India, the Reserve Bank of India and SEBI chairman Tuhin Kanta Pandey.
- What
- SEBI is implementing an IOSCO artificial-intelligence supervisory toolkit and piloting tokenised corporate bonds through Demat 2.0.
- When
- The announcements were made on Thursday at the Global Fintech Fest 2026.
- Where
- In the Indian securities market.
- Why
- To strengthen AI risk management, improve governance, enable faster settlement and reduce settlement-related risks and manual processing.
- 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.