+
REC Issues India's First Tokenised Corporate Bond Pilot
POWER & RENEWABLE ENERGY

REC Issues India's First Tokenised Corporate Bond Pilot

REC Limited has successfully issued India's first pilot tokenised corporate bond under the Securities and Exchange Board of India's (SEBI) Regulatory Sandbox Framework, marking a significant step towards digitalisation of the country's debt market.

The pilot issue was sized at Rs 5 billion, comprising a base issue of Rs 1 billion and a green shoe option of Rs 4 billion. Bidding was conducted through the Electronic Book Provider platform of the National Stock Exchange of India (NSE).

The issue received bids worth Rs 7.96 billion, nearly eight times the base issue size. REC accepted Rs 5 billion at a coupon rate of 7.30 per cent per annum for a tenor of one year and nine months.

The tokenised mechanism enabled faster settlement, with pay-in, allotment and listing completed on the same day. The bonds have been listed on NSE and BSE.

The issuance introduces atomic Delivery-versus-Payment settlement and shared-ledger transparency to India's corporate bond market. It forms part of the Demat 2.0 initiative, under which securities ownership can be recorded and tracked using permissioned distributed ledger technology.

REC said the framework combines digital infrastructure, distributed ledger technology and CBDC-enabled settlement while retaining existing investor protection and regulatory safeguards.

The pilot was undertaken with the participation of SEBI, the Reserve Bank of India and market infrastructure institutions, including NPCI, depositories and stock exchanges. The initiative is expected to help reduce settlement risks and operational friction while supporting the development of next-generation capital market infrastructure.

REC Limited has successfully issued India's first pilot tokenised corporate bond under the Securities and Exchange Board of India's (SEBI) Regulatory Sandbox Framework, marking a significant step towards digitalisation of the country's debt market.The pilot issue was sized at Rs 5 billion, comprising a base issue of Rs 1 billion and a green shoe option of Rs 4 billion. Bidding was conducted through the Electronic Book Provider platform of the National Stock Exchange of India (NSE).The issue received bids worth Rs 7.96 billion, nearly eight times the base issue size. REC accepted Rs 5 billion at a coupon rate of 7.30 per cent per annum for a tenor of one year and nine months.The tokenised mechanism enabled faster settlement, with pay-in, allotment and listing completed on the same day. The bonds have been listed on NSE and BSE.The issuance introduces atomic Delivery-versus-Payment settlement and shared-ledger transparency to India's corporate bond market. It forms part of the Demat 2.0 initiative, under which securities ownership can be recorded and tracked using permissioned distributed ledger technology.REC said the framework combines digital infrastructure, distributed ledger technology and CBDC-enabled settlement while retaining existing investor protection and regulatory safeguards.The pilot was undertaken with the participation of SEBI, the Reserve Bank of India and market infrastructure institutions, including NPCI, depositories and stock exchanges. The initiative is expected to help reduce settlement risks and operational friction while supporting the development of next-generation capital market infrastructure.

Related Stories

Gold Stories

Next Story
Equipment

Radialisation is becoming increasingly important: Amit Tolani, CEAT

In a conversation with Ashlin Rajan, Amit Tolani, CEO, CEAT Specialty, discusses CEAT’s expanding off-highway tyre portfolio through Camso, the shift towards radialisation and the growing demands on construction equipment. He also shares insights into the company’s investments in automation, digitalisation, AI and sustainable manufacturing, as well as its plans to build more efficient and connected production capabilities. With Camso giving CEAT access to premium construction, agriculture, material-handling tyre and track segments, where do you see the biggest growth opportunity over ..

Next Story
Real Estate

MICL, Godrej Properties partner for Marine Lines project

Man Infraconstruction (MICL) has partnered with Godrej Properties Group for the development of a sea-facing residential project at Marine Lines in South Mumbai. The project has an estimated overall revenue potential of more than Rs 60 billion.Under the transaction, MICL, which was earlier the Development Manager for the project, has partnered with Godrej Properties for its development. The development rights jointly held by MICL and Shreepati Group have been transferred to Godrej Properties. MICL will continue to participate in the project through an agreed revenue-sharing arrangement.Spread a..

Next Story
Resources

Bharat Bijlee appoints Khushru Vakharia as MTM Vice President

Bharat Bijlee has appointed Khushru Vakharia as Vice President of its Magnet Technology Machines (MTM) Division, effective August 31, 2026. He succeeds R Rajaraman, who has retired as Division Head.The MTM Division is part of Bharat Bijlee’s Industrial Systems business and provides permanent magnet technology solutions, including the GreenStar range of gearless elevator machines for customers in India and international markets.Vakharia has more than 35 years of experience with Bharat Bijlee across manufacturing, strategic planning, operational procurement, plant engineering, quality assuranc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code