Sebi's Demat 2.0 pilot raises ₹1,025 crore in tokenised bond sales
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims + Mains·
DLT and CBDC integration in capital markets: a GS3 economy and fintech case study.
Why in news
Sebi launched a Demat 2.0 pilot for tokenised corporate bonds to enable faster settlement and fund access using distributed ledger technology (DLT) and the RBI’s e-rupee.
Background
The pilot involved three companies—REC, L&T, and IIFL—which successfully raised ₹1,025 crore. The system automates interest and redemption payments while eliminating settlement risk through DLT integration.
Facts for Prelims
- BodySebi: The regulatory body overseeing the Demat 2.0 pilot for tokenised bonds
- S&TDistributed Ledger Technology (DLT): The underlying technology used for faster settlement
- Fact₹1,025 crore: Total amount raised by REC, L&T, and IIFL during the pilot
- Facte-rupee: The RBI's digital currency integrated with the Demat 2.0 system
Prelims practice question
Which technology is being integrated with the e-rupee in the Demat 2.0 pilot to automate bond payments and eliminate settlement risk?
- (a)Distributed Ledger Technology
- (b)Artificial Intelligence
- (c)Cloud Computing
- (d)Blockchain Mining
Show answer
Answer: (a) Distributed Ledger Technology — The note states that Distributed Ledger Technology (DLT) is used to automate payments and eliminate settlement risk.
For Mains
Q. Discuss how the integration of Distributed Ledger Technology (DLT) and Central Bank Digital Currencies (CBDC) can enhance the efficiency and transparency of India's capital markets.
Dimensions to cover in your answer
- Settlement efficiency: Reduction of counterparty risk and T+0 settlement capabilities via DLT
- Liquidity management: Real-time fund access and automated redemption cycles for corporate issuers
- Regulatory oversight: Balancing innovation in tokenised assets with investor protection and systemic stability
Keywords: Distributed Ledger Technology · Tokenisation · Capital Market Efficiency · e-rupee · Settlement Risk · Financial Innovation
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.