India Launches Demat 2.0 Tokenized Bond Pilot

Key Takeaways

• India’s Demat 2.0 pilot links tokenized corporate bonds with digital-rupee settlement.
• The proposed rollout starts with institutions, with retail access and secondary trading planned for a later stage.

Details

The Securities and Exchange Board of India (SEBI) announced the launch of Demat 2.0 on September 10, 2026, a pilot for tokenized corporate bonds and settlement in central-bank digital money.

The initiative was introduced at the Global Fintech Fest in Mumbai. It began with three issuances, including a ₹500 crore (₹5 billion) Larsen & Toubro issue, The Indian Express reported.

SEBI’s pilot FAQ describes a private, permissioned ledger, with nodes initially run by depositories and stock exchanges. Bond terms and investor rights remain unchanged.

The design links delivery of the bond and payment so both settle together or neither settles. Smart contracts support coupon and redemption processing. The proposed first stage covers issuance and servicing, with institutional participation expected initially; the second adds secondary trading and retail access.

Market Analysis

Demat 2.0 builds on existing securities-market channels: issuance continues through exchange bidding platforms, and the pilot operates within SEBI’s regulatory sandbox. Before secondary trading begins, transfers may be arranged through depositories, with payment outside the atomic settlement system. The initial rollout therefore tests issuance and servicing ahead of a wider trading market.

Sources: SEBI launch announcement and accompanying pilot FAQ, September 10, 2026; The Indian Express, updated September 11, 2026.

Note: This article is for news reporting purposes only and does not constitute investment advice.