Source: IE
Context
SEBI launched Demat 2.0, a pilot project for tokenisation of corporate bonds using distributed ledger technology (DLT) — jointly launched by RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey at the Global Fintech Fest.
What is Demat 2.0?
- Demat = keeping your shares and securities in digital form instead of paper form.
- Demat 1.0 = Paper shares → Digital shares
- Demat 2.0 = Digital bonds → Tokenised bonds + Digital money settlement
- India introduced Demat 1.0 in 1996, which converted physical securities into electronic form.
How It Works
- Corporate bonds are created as digital tokens on a distributed ledger
- A shared electronic record maintained by market infrastructure institutions using DLT
- The ledger is owned by the depositories
