Sebi explores tokenized corporate bonds pilot to deepen India’s debt markets | Stock Market News
The regulator is eyeing faster settlement, better transparency and improved liquidity as it tests blockchain-based bond tokenization.
MUMBAI: The Securities and Exchange Board of India (Sebi) is exploring a pilot to tokenize corporate bonds as the regulator seeks to deepen India’s debt markets, chairman Tuhin Kanta Pandey said on Tuesday.
“We are exploring a pilot for tokenization of corporate bonds,” Pandy said at the Care Edge Debt Market Summit 2026 in Mumbai. “The pilot will test whether tokenization can deliver faster settlement, better traceability, automated servicing and greater transparency. Once you do that, there will be a greater possibility of more liquidity.”
Tokenization refers to the conversion of real-world financial assets into digital tokens recorded on distributed ledger technology (DLT) systems such as blockchain networks, which allow multiple participants to record and synchronize data without a central authority.
Sebi, Pandy said, would proceed cautiously, citing technological and operational risks. “Of course, we also need to take on board the risks which are there on tokenization especially on the quantum side. We must move carefully – but we must remain open to useful innovation.”
The technology currently has limited use in India’s debt market infrastructure. Depositories National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) already use blockchain-based systems to monitor security creation and covenant compliance in non-convertible securities.
These systems track the lifecycle of corporate bonds digitally and reduce manual intervention and compliance risks.
Pandey also addressed Taiwan’s stock market overtaking India’s by market capitalization on Monday. Taiwan’s market capitalization rose to $4.95 trillion, edging past India’s $4.92 trillion, according to a Bloomberg report.
“India is a very diversified market. In Taiwan, there are concentrated stocks,” Pandey said. “Some of the most favoured investment themes currently are linked directly or indirectly to AI (artificial intelligence), and market valuations in certain jurisdictions rise because of exceptional investor interest.”
Separately, Sebi, along with the Reserve Bank of India and the finance ministry, is also working on a market-making framework for the corporate bond market. Finance Minister Nirmala Sitharaman had announced the proposal in the Union Budget 2026 as part of efforts to deepen bond markets and improve retail participation.
The regulator may also review disclosure norms for companies that have only debt listed on exchanges, Pandey said.
“There is also a need to review whether debt-only listed entities need the same rigor under LODR (Listing Obligations and Disclosure Requirements) regulations as equity listed companies. We will take up this review in due course,” the Sebi chief said.
Separately, Sebi is planning a distinct category of brokers for bond markets. Pandey said a dedicated regulatory classification for debt brokers could lower costs, reduce entry barriers and encourage specialized intermediaries.
About the Author
Apoorva Ajith
Apoorva is a Mumbai-based journalist at Mint who covers the Securities and Exchange Board of India (SEBI), tracking the pulse of India’s capital markets, regulatory developments and the people who operate within them. She holds a postgraduate diploma in business and financial journalism from the Asian College of Journalism, where she developed a strong foundation in markets, companies, and economic policy. She began her journalism journey with an internship at Bloomberg, where she worked across beats such as real estate, infrastructure, capital markets, and deals, which helped her understanding of business and finance.
She is guided by the belief that everything in this world can be explained in simple and fewer words, and that idea shapes how she approaches her writing. She aims to cut through complexity and present nuanced regulatory and financial developments in a way that is both accessible and meaningful to readers.
When she is not tracking market chatter, Apoorva can usually be found deep into a fiction novel or out on a long run. She is also a trained classical dancer in Bharatanatyam, Mohiniyattam, and Kathakali.
