New Delhi, May 29 -- India's capital markets regulator is exploring a pilot to tokenize corporate bonds as it seeks to deepen India's debt markets, Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (Sebi) said on Tuesday.

"The pilot will test whether tokenization can deliver faster settlement, better traceability, automated servicing and greater transparency. Once you do that, there will be a greater possibility of more liquidity," Pandey said at the Care Edge Debt Market Summit 2026 held in Mumbai.

Bond tokenisation is the process of converting a traditional bond into digital tokens using a blockchain framework. Each token represents ownership of a portion of the bond, giving investors exposure to the same unde...