Sebi launches Demat 2.0 pilot to tokenise corporate bonds

Sebi has introduced Demat 2.0, a pilot scheme designed to tokenise corporate bonds and streamline investor transactions. The initiative enables rapid settlement and allows investors to retrieve funds instantly upon maturity or sale.

The system automates interest and redemption payments using smart contracts, eliminating manual processing delays. Atomic settlement technology ensures bonds and corresponding payments are released simultaneously, reducing counterparty risk.

Sebi plans to expand Demat 2.0 to secondary markets and individual investors in future phases, potentially transforming how retail and institutional investors participate in the bond market.