News: SEBI Tokenised Bond Pilot Could Open Debt to Small Investors-30-06-2026
Corporate bonds have largely stayed out of reach of ordinary Indian savers. Traded in bulk by institutions and accessed by sophisticated investors through select platforms, they have been seen as too large, illiquid and opaque for everyday investing. A regulatory pilot may alter that.
Speaking at the CareEdge Debt Market Summit 2026 in Mumbai, SEBI chairman Tuhin Kanta Pandey confirmed that the regulator has approved a pilot to test tokenisation of corporate bonds using Distributed Ledger Technology (DLT). Rollout is expected within six to nine months. SEBI will work with market stakeholders to test the technical and operational frameworks on a limited scale before any wider adoption.
The regulator wants to see whether tokenised infrastructure can bring faster settlement, better traceability of transactions, automated servicing of debt instruments and more transparency.
The technology already has a place in India’s capital markets. Depositories NSDL and CDSL use blockchain-based systems to monitor security creation and covenant compliance for non-convertible securities. The new proposal extends DLT from monitoring to the actual tokenisation and settlement of bonds.
Tokenisation targets structural barriers. Splitting high-value bonds into smaller digital tokens could lower the entry point to as little as Rs 1 to Rs 100 in specific asset structures. Real estate, another asset class with high capital requirements, is on a similar path, with platforms like AltDRX letting investors take part digitally in curated property opportunities.
Pandey urged caution, saying the regulator must move carefully but "remain open to useful innovation". For investors, the pilot signals the direction of India’s financial infrastructure and which asset classes may benefit.
This article was produced on behalf of the brand by HT Brand Studio without journalistic or editorial involvement by Hindustan Times, and is for information only, not financial advice.
