The Securities and Exchange Board of India has launched Demat 2.0, a pilot market infrastructure for issuing, holding, trading and settling tokenised corporate bonds. Three companies have issued bonds totaling INR 10.25 billion in the first phase. The depository owned distributed ledger connects to the Reserve Bank of India’s wholesale central bank digital currency through its Unified Market Interface, allowing the securities and funds legs to settle simultaneously. Smart contracts can automate interest and redemption payments, while issuers can receive funds on the bidding date rather than after the usual two to three days. Investors can also receive secondary market proceeds immediately. The legal status of the bonds and investors’ rights remain unchanged, and existing requirements for credit ratings, debenture trustees, listing and disclosures continue to apply. Investors use their existing demat accounts but must enable Demat 2.0 with their depository and hold a wholesale digital rupee wallet with a participating bank. REC Limited raised INR 5 billion from 18 investors, L&T Limited raised INR 5 billion from four investors, and IIFL raised INR 250 million from one investor. Later phases will extend the pilot to secondary trading through existing request for quote platforms and access for retail investors, with experience from the pilot informing any wider rollout.
2026-09-10Securities & Exchange Board of India
Securities and Exchange Board of India launches Demat 2.0 tokenised corporate bond pilot with INR 10.25 billion issued
The Securities and Exchange Board of India has launched Demat 2.0, a tokenised corporate bond pilot that uses a depository owned distributed ledger and the Reserve Bank of India’s wholesale digital rupee for simultaneous securities and funds settlement. Three issuers have raised INR 10.25 billion, while later phases will add secondary trading and retail investor access. Existing investor rights and regulatory requirements remain unchanged.