Tokenized Bonds Seen as Potential Game-Changer for Bond Market: SEBI Official

SEBI Plans Pilot Programme for Tokenised Bonds

The Securities and Exchange Board of India (SEBI) is exploring technology-led reforms to deepen India's fixed-income market and improve bond trading infrastructure. As part of this effort, SEBI is planning a pilot programme to issue tokenised bonds.

At the India Fixed Income Summit, organised by CNBC-TV18 in association with IndiaBonds, on May 26, 2026, SEBI Executive Director Maninder Cheema shared her views on the future of India's bond market. Cheema highlighted the potential of tokenisation to address challenges in bond market trading. Tokenisation of securities is a technology that enables the creation of digital tokens representing ownership of securities, such as bonds.

According to Cheema, tokenisation could enable instant settlement, enhanced transparency, smart contracts, and potentially improve liquidity by way of enabling anonymisation. This is in contrast to the current RFQ platform, which does not allow for anonymisation.

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SEBI sees technology-led changes as part of a broader push to strengthen India's corporate bond market and improve market participation and liquidity. Cheema stated that the regulator's agenda is to create a bond market that is deep, liquid, transparent, inclusive, and globally credible.

The development of debt markets is linked to India's economic ambitions, with long-term capital being essential to support growth across sectors. Cheema noted that India aims to become a developed economy by 2047, and that bond markets will play a crucial role in financing infrastructure, manufacturing, energy transition, urban development, housing, logistics, data centres, and innovation.

Cheema also highlighted the importance of improving transparency and information flow in bond markets. She noted that the market architecture has transformed over the years, but that trust remains central to the growth of India's debt markets.

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"A bond market is ultimately a market of trust, a promise of payment, truthful disclosure, fair markets, vigilant regulation in reliable exit… Trust has to come from the players in the market… Trust must not be broken, because after trust is broken, it is already too late," Cheema said.