New Delhi, May 28 -- The Securities and Exchange Board of India (Sebi) is weighing a plan to deepen India's corporate bond market and draw in retail investors by allowing bonds to be represented digitally and traded in tokens or smaller units. Will such steps move the needle for a segment that's fallen behind its counterparts in retail participation? Mint explores.

Sebi chairman Tuhin Kanta Pandey, speaking at an event on Tuesday, said the regulator will examine if tokenisation can improve transparency, settlement efficiency and liquidity in the corporate bond market.

Tokenization refers to converting a real-world financial asset into a digital token that can be recorded and traded electronically. In this case, corporate bonds would be ...