The National Stock Exchange of India (NSE) has successfully launched India’s inaugural tokenised corporate bond issuances, totalling Rs 1,000 crore. This milestone achievement took place under the framework established by the Securities and Exchange Board of India (SEBI) and was facilitated on the NSE Electronic Bidding Platform (NSE EBP).

On September 7, 2026, REC Limited marked its entry by raising Rs 500 crore with its tokenised bond issuance, followed closely by Larsen & Toubro, which issued another Rs 500 crore on September 9, 2026. These events signify a noteworthy expansion in the corporate bond market in India, distinguished by their utilisation of tokenisation technology.

The formal introduction of this technology took place at the Global Fintech Fest 2026 in Mumbai on September 10, when it was unveiled by Sanjay Malhotra, the Governor of the Reserve Bank of India, and Tuhin Kanta Pandey, the Chairman of SEBI. This event underscored the growing role of innovative financial technologies in reshaping India’s financial landscape.

Details of REC and Larsen & Toubro Issuances

REC’s tokenised issuance featured a base size of Rs 100 crore, with an additional green shoe option allowing for an increase of Rs 400 crore. Notably, the issuance attracted significant interest, garnering an overall subscription rate of 7.9 times its base issue, with REC eventually accepting Rs 500 crore at an interest rate of 7.30 per cent. The involvement of various financial sectors, including banks and mutual funds, highlighted the appeal of this new mechanism.

Following REC’s path, Larsen & Toubro’s issuance demonstrated the willingness of private-sector entities to embrace technological advancements within the financial markets. The NSE indicated that the successful implementation by both companies could pave the way for a broader acceptance of tokenisation within the corporate bond sector.

Tokenisation is a process that facilitates the representation and management of securities in a digital format, utilising Distributed Ledger Technology (DLT). This approach is expected to lead to improvements in atomic settlement efficiency, greater transparency, and enhanced operational effectiveness throughout the securities lifecycle.

Future Implications for the Corporate Bond Market

The NSE has expressed its intention to be at the forefront of technological advancements within India’s capital markets. According to Viral Mody, Executive Director of Vertical 1 (Critical Operations) at NSE, the successful execution of tokenised corporate bonds exemplifies the organisation’s ability to convert emerging technologies into practical solutions that align with regulatory market standards.

Mody further emphasised NSE’s commitment to developing a market infrastructure that is not only technologically driven but also trustworthy, robust, and responsive to the changing requirements of issuers and investors alike. The exchange reaffirms that such initiatives will bolster the integrity and functionality of financial markets across the country.

This initiative, made possible under the SEBI Regulatory Sandbox Framework, received critical guidance and support from both SEBI and the Reserve Bank of India. The collaborative efforts of these institutions are anticipated to enhance innovation within the finance sector, potentially leading to more efficient capital allocation and investment opportunities in India.

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