SEBI Launches Demat 2.0 Pilot For Tokenised Corporate Bonds
Add Preferred News Source
SEBI has launched a pilot for tokenised corporate bonds under Demat 2.0, with three issuers already participating. The next phase will bring secondary-market trading into the framework.
The Securities and Exchange Board of India (SEBI) has launched a pilot for tokenised corporate bonds under its Demat 2.0 initiative, with three issuers already participating in the first phase.
The pilot, launched on 10 September 2026, is aimed at testing whether distributed ledger technology (DLT) can bring the securities and settlement sides of a transaction closer together and allow faster settlement and greater automation.
What Is SEBI Testing Under Demat 2.0?
The first phase of the SEBI Demat 2.0 pilot has involved three issuers, SEBI Chairman Tuhin Kanta Pandey said at the Global Fintech Fest 2026 in Mumbai.
The initiative is being led by Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL), with support from Bombay Stock Exchange (BSE), Metropolitan Stock Exchange of India (MSEI) and National Stock Exchange (NSE), along with banks, issuers, investors, National Payments Corporation of India (NPCI) and regulators.
The framework does not create a new asset class. The same corporate bonds will continue to be held through the existing depository system and Demat accounts. The main change is the technology used to handle them, with DLT being introduced under the pilot.
How Will Tokenised Corporate Bonds Be Settled?
The system combines tokenised securities with the Reserve Bank of India's Central Bank Digital Currency (CBDC) for settlement and uses smart-contract functionality. Under the new system, the securities and payment legs can happen simultaneously rather than sequentially. This is known as atomic settlement, where the transfer of securities and payment take place together, with no partial settlement.
Investors will not need to open a new type of Demat account or use a separate depository system. The existing framework will continue to be used.
What Comes Next For Demat 2.0?
SEBI has completed the first phase and plans to bring secondary-market trading into the framework in the next phase.
Mr Pandey said the regulatory framework for corporate bonds will remain unchanged. The pilot is focused on changing the technology used for the market rather than creating a separate regulatory structure.
The initiative also forms part of SEBI's broader focus on technology and market infrastructure, including preparing for risks linked to technologies such as quantum computing.
The pilot is testing a system in which securities, settlement and servicing can become more integrated and programmable. SEBI is also looking at how newer technology can be adopted without allowing related risks to grow at the same pace.
With secondary trading planned as the next step, the pilot will now move beyond the initial issuance phase and test how the technology can work across a broader part of the corporate bond market.
Also Read - Sonaselection India IPO Price Band Fixed At ₹94–99; Issue Opens 17 September
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
Right Tools, Rich Insights
