The issue attracted bids worth ₹796 crore and enabled same-day settlement, allotment and listing on NSE and BSE.
New Delhi, September 7, 2026: REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has issued India’s first pilot tokenised corporate bonds under the Securities and Exchange Board of India (SEBI) Regulatory Sandbox Framework.
The pilot issue was valued at ₹500 crore, comprising a base issue of ₹100 crore and a green shoe option of ₹400 crore. Bidding was conducted through the electronic bidding platform of the National Stock Exchange of India Limited (NSE).
The issue received bids worth ₹796 crore, reflecting strong investor interest in the new financial instrument. REC accepted ₹500 crore at a coupon rate of 7.30% per annum for a tenure of one year and nine months.
According to REC, the tokenised issuance enabled the pay-in, allotment and listing of bonds on the same day. The bonds are listed on both NSE and BSE Limited.
The pilot initiative highlights the potential of tokenisation to improve settlement efficiency and transparency in India’s corporate debt market. It also introduces atomic Delivery-versus-Payment (DvP) settlement, under which the transfer of securities and payment are linked to reduce settlement risk.
The initiative reflects coordination among SEBI, the Reserve Bank of India (RBI) and participating Market Infrastructure Institutions (MIIs), including payment infrastructure providers, depositories and stock exchanges.
Rajesh Kumar, Director (Finance) at REC, credited SEBI’s regulatory approach and stakeholder engagement with supporting innovation in India’s capital markets. He highlighted the regulator’s focus on ease of doing business, market efficiency and faster regulatory processes.
Kumar also described the Demat 2.0 initiative and tokenisation of corporate bonds as important developments in the evolution of India’s debt markets.
The initiative uses digital infrastructure and distributed ledger technology, alongside central bank digital currency (CBDC)-enabled settlement, while retaining existing investor protections and regulatory safeguards.
Under the Demat 2.0 framework described by REC, securities ownership is recorded and tracked on a permissioned distributed ledger. The approach aims to reduce operational friction and settlement risks while maintaining statutory requirements and institutional compliance.
The pilot marks a step towards exploring how tokenised securities and digital settlement systems can support the next phase of development in India’s capital market infrastructure.
