Speaking on the sidelines of the CareEdge Debt Market Summit, Pandey said, “Once you do that, there will be a greater possibility of more liquidity and instantaneous autonomous settlements.” He added that the initiative would take time, with various stages likely to unfold over the next six to nine months.

While tokenisation offers several benefits, regulators must also assess the risks associated with the technology, particularly those that could emerge from future developments in quantum computing, he said.

DLT is already being used in areas such as depositories and covenant monitoring. Sebi now wants to evaluate whether the technology can improve efficiency and liquidity in the corporate bond market.