India Tests Blockchain for Faster Corporate Bond Trades

Market regulator SEBI has started a pilot project that uses distributed ledger technology to tokenize corporate bonds, Chairman Tuhin Kanta Pandey announced on Tuesday. The experiment seeks to determine whether blockchain systems can enhance trading efficiency, increase liquidity and accelerate settlement in India's debt market. Pandey explained that while corporate bonds already trade on current platforms, the regulator is exploring whether DLT-based tokenization could further improve market functioning. The pilot will also help assess potential risks before wider adoption. The SEBI chief said the initiative will allow stakeholders to collaborate on a practical operating model and technical architecture ahead of any full-scale implementation. He pointed out that the Reserve Bank of India has released draft rules and final guidelines are expected shortly. Once those rules are notified, SEBI and the exchanges stand prepared to roll out the framework. Pandey also touched on global equity trends, noting that excitement around artificial intelligence and semiconductor supply chains is lifting valuations in related companies. He contrasted India's broad-based market with Taiwan's concentration in a few large technology names, saying India's diversity provides a more balanced investment environment.