SEBI Launches Demat 2.0 Pilot for Tokenised Corporate Bonds and Confirms They Remain Securities
Key Takeaways
- 01SEBI launched the Demat 2.0 pilot for tokenised corporate bonds on 10 September 2026 and issued FAQs on it.
- 02The pilot tests DLT-based issuance, holding, trading and settlement of corporate bonds.
- 03Tokenised corporate bonds remain securities under India’s existing securities framework.
- 04Settlement uses CBDC-linked atomic delivery-versus-payment on a private, permissioned DLT network.
- 05Lasting changes to market practice will depend on the pilot’s results and subsequent SEBI action.
The Securities and Exchange Board of India (SEBI) announced the launch of its “Demat 2.0” pilot project for tokenised corporate bonds on 10 September 2026 and published FAQs on the pilot.
The pilot tests the use of distributed ledger technology (DLT) for the issuance, holding, trading and settlement of corporate bonds. It covers the bond lifecycle rather than limiting DLT use to issuance alone.
The FAQs state that tokenisation does not change the legal character of the bonds: they remain securities governed by India’s existing securities framework. Transactions settle through atomic delivery-versus-payment, so the bond token and the payment move together or not at all, with payment through a central bank digital currency (CBDC) link. The pilot runs on a private, permissioned DLT network rather than a public blockchain.
For issuers, investors and intermediaries, tokenisation is being tested as a technology and settlement mechanism inside the regulated bond market, not as a new class of unregulated digital asset. Any lasting change to market practice will depend on the pilot’s results and on further SEBI measures.