According to sources, India will launch its first tokenised bond in September, marking a historic step toward blockchain‑based securities. The move aims to deepen market liquidity and attract foreign portfolio investors.

  • First tokenised bond under SEBI pilot to be issued in September
  • Targeted to boost foreign portfolio investor participation
  • Blockchain technology promises faster settlement and lower costs

Overview of the Tokenisation Pilot

India’s finance ministry, in coordination with the Securities and Exchange Board of India (SEBI), plans to roll out its inaugural tokenised corporate bond this September. The pilot, part of SEBI’s broader tokenisation framework, seeks to modernise the country’s debt market by issuing digital securities on a blockchain platform.

Key Players and Issuance Process

The National Hydroelectric Power Corporation (REC) has been named the lead issuer, with several major banks preparing multi‑tenor bond series for investors. All transactions will be recorded on a permissioned blockchain, enabling near‑real‑time clearing and settlement while reducing custodial fees.

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Regulatory Landscape and RBI Involvement

SEBI has already released detailed guidelines for tokenised securities, and the Reserve Bank of India (RBI) is providing the necessary digital‑payments infrastructure. This regulatory synergy ensures that the bond issue complies with both domestic law and international best practices.

Implications for Foreign Portfolio Investors (FPIs)

Tokenised bonds are expected to simplify entry for FPIs by offering instant settlement, transparent ownership records, and lower transaction costs. Analysts project that the new format could attract billions of dollars in additional capital to India’s debt market.

Historical Background

India’s journey toward digital assets began in 2022 with the country’s first security token offering, which raised modest capital but demonstrated technical feasibility. The upcoming bond pilot builds on that experience, signalling a shift toward a fully digitised capital‑raising ecosystem.

Why This Matters

BozokMedia analysis shows that tokenised bonds could dramatically reduce settlement times from days to minutes, lower transaction costs, and open the Indian debt market to a broader pool of global investors, potentially boosting capital inflows by billions of dollars.

"Tokenised bonds will make India’s debt market more competitive on a global stage," says financial analyst Ajay Mishra.
Did You Know?: The first Indian security token was issued by a fintech startup in 2022, raising just $1 million as a proof‑of‑concept.

Frequently Asked Questions

Q1: How does a tokenised bond work?
A: It converts a traditional bond into a digital token recorded on a blockchain, granting investors verifiable ownership and enabling faster transfers.

Q2: Are there any restrictions for foreign investors?
A: Under current SEBI guidelines, eligible foreign portfolio investors can participate without additional caps, subject to standard KYC and AML procedures.