New Delhi: REC Limited, a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Power and a leading NBFC-IFC, has achieved a landmark milestone in India’s capital markets with the issuance of the country’s first pilot issue of tokenized corporate bonds under the Securities and Exchange Board of India (SEBI) Regulatory Sandbox Framework.
The pilot issue, worth ₹500 crore, received a strong response from investors, with bids worth ₹796 crore, resulting in the issue being oversubscribed by around 8 times. The successful transaction marks a significant step towards the adoption of technology-driven infrastructure in India’s debt markets.
₹500 Crore Tokenized Bond Issue Receives ₹796 Crore in Bids
The tokenized corporate bond issue was conducted through the Electronic Bidding Platform (EBP) of the National Stock Exchange of India Limited (NSE).
Key details of the issue include:
- Total issue size: ₹500 crore
- Base issue: ₹100 crore
- Green shoe option: ₹400 crore
- Total bids received: ₹796 crore
- Subscription: Around 8 times
- Amount accepted by REC: ₹500 crore
- Coupon rate: 7.30% per annum
- Tenor: 1 year and 9 months
- Listing: NSE and BSE Limited
The strong bidding response reflects significant investor interest in technology-driven innovations in India’s capital markets.
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Same-Day Settlement Through Tokenized Issuance
One of the key features of the pilot was the faster settlement process enabled by tokenization. The pay-in, allotment and listing of the bonds were completed on the same day.
REC said the successful implementation of the pilot involved coordinated efforts by:
- Securities and Exchange Board of India (SEBI)
- Reserve Bank of India (RBI)
- National Payments Corporation of India (NPCI)
- Depositories
- Stock exchanges
- Other participating Market Infrastructure Institutions (MIIs)
The initiative demonstrates the potential of digital infrastructure to streamline securities transactions while retaining existing regulatory and investor protection mechanisms.
Demat 2.0 and Tokenization of Corporate Bonds
The issuance represents an important development under the Demat 2.0 initiative, which focuses on the tokenization of securities and the use of digital infrastructure in India’s capital markets.
The pilot introduces:
- Atomic Delivery-versus-Payment (DvP) settlement
- Shared-ledger transparency
- Permissioned distributed ledger technology
- Digital securities ownership records
- CBDC-enabled settlement
Under the Demat 2.0 framework described by REC, securities ownership is securely recorded and tracked on a permissioned distributed ledger.
REC said the approach is intended to reduce settlement risks and operational friction while maintaining existing statutory safeguards and institutional compliance.
REC Highlights SEBI’s Technology-Driven Market Reforms
Speaking on the milestone, Shri Rajesh Kumar, Director (Finance), REC, expressed appreciation to SEBI for its leadership in strengthening India’s capital markets through progressive regulations, stakeholder consultation and technology-driven reforms.
He highlighted SEBI’s continued focus on:
- Ease of doing business
- Improved market efficiency
- Faster regulatory processes
- Technology-driven reforms
- Strengthening the depth and resilience of India’s financial markets
Shri Rajesh Kumar also highlighted the significance of Demat 2.0 and tokenization of corporate bonds in the evolution of India’s debt markets.
He said that leveraging digital infrastructure, distributed ledger technology and CBDC-enabled settlement, while preserving investor protections and regulatory safeguards, can help lay the foundation for the next generation of capital market infrastructure.
Tokenized Bonds Mark Step Towards Future-Ready Capital Markets
The pilot issue is a significant development in India’s capital market infrastructure. By combining tokenization, permissioned distributed ledgers and atomic DvP settlement, the initiative seeks to improve the speed, transparency and efficiency of securities transactions.
The successful ₹500 crore issuance also demonstrates the potential of technology-enabled corporate bond markets to operate alongside existing regulatory and institutional frameworks.
The same-day completion of pay-in, allotment and listing highlights the potential of tokenized securities to reduce settlement-related risks and operational delays while maintaining statutory investor safeguards.
Bonds Listed on NSE and BSE
Following the successful completion of the transaction, the tokenized corporate bonds have been listed on both the National Stock Exchange of India Limited (NSE) and BSE Limited.
The listing marks another important stage in the pilot and demonstrates the integration of tokenized securities with India’s established market infrastructure.
About REC Limited
REC Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Power, Government of India, and a leading Non-Banking Financial Company–Infrastructure Finance Company (NBFC-IFC). The company is primarily engaged in financing infrastructure projects, particularly in the power sector, and plays an important role in supporting India’s energy and infrastructure development.
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