Finance3h ago
Demat 2.0 explained: Why it matters for bond market investors
AI EXECUTIVE SUMMARY
Sebi has introduced Demat 2.0, a pilot program that tokenises corporate bonds to enable faster settlement and instant fund access for investors. The system uses smart contracts to automate interest and redemption payments, while atomic settlement synchronises bond release with payment to reduce risk. Future plans aim to extend the platform to secondary markets and individual investors.
WHY IT MATTERS
The rollout of Demat 2.0 could streamline bond trading and reduce settlement risk, potentially improving liquidity and investor confidence in the bond market.
In an innovative move, Sebi has rolled out Demat 2.0, a pilot scheme aimed at tokenising corporate bonds. This initiative facilitates rapid settlement and instant fund retrieval for investors. It automates interest and redemption payments through smart contracts, while atomic settlement mitigates risks by coordinating the release of bonds and payments seamlessly. Future developments will broaden this system's reach to secondary markets and individual investors.
This story was originally reported by Economic Times โ Markets. As an automated real-time news aggregator, NewsToolBar provides multi-perspective indexing and AI summarization while directing full readership directly to primary publisher sources.
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