0, aimed at tokenising corporate bonds on a digital ledger. By moving bond holdings into a dematerialised format that leverages blockchain‑based smart contracts, the regulator hopes to modernise a market that has traditionally been dominated by institutional players. The new framework automates interest accrual and redemption payments, eliminating manual processing delays.
An "atomic settlement" mechanism ensures that bond transfer and payment occur simultaneously, cutting counter‑party risk and delivering funds to investors within seconds. For retail participants, this means the ability to buy, hold and sell bonds with the same speed and certainty that equities enjoy on the NSE and BSE. Analysts see the initiative as a catalyst for deeper retail participation in the fixed‑income space, especially as the Nifty 50 continues to trade in a relatively stable range.
Faster settlement could improve liquidity, narrow bid‑ask spreads and potentially lower yields on newly issued corporate bonds, making them a more attractive complement to equity holdings for salaried professionals seeking diversified, lower‑volatility assets. The pilot will initially run with a select group of issuers and depositories, but Sebi has signalled plans to extend the model to secondary markets and a broader investor base. Retail investors should monitor announcements from their brokers and be ready to upgrade demat accounts to access the new tokenised bond offerings.