SEBI Demat 2.0: Corporate Bond Tokenisation Pilot
Why in the news
At the Global Fintech Fest, RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey together started Demat 2.0, a pilot that puts corporate bonds on a distributed ledger as tokens.
Key facts
- Demat 2.0: pilot for tokenisation of corporate bonds using distributed ledger technology (DLT).
- Launched by: Sanjay Malhotra (RBI) and Tuhin Kanta Pandey (SEBI).
- Venue: Global Fintech Fest.
Demat 1.0 versus 2.0
| Version | What changed |
|---|---|
| Demat 1.0 (1996) | Paper shares converted into digital shares |
| Demat 2.0 | Digital bonds become tokenised bonds, with digital money settlement |
How it works
- Bonds are created as digital tokens on a distributed ledger.
- A shared electronic record is kept by market infrastructure institutions using DLT.
- The ledger is owned by the depositories.
Exam angle
- Technology used: DLT.
- Year Demat 1.0 was introduced: 1996.
- Instrument covered by the pilot: corporate bonds.