MUMBAI, May 26 -- The Securities and Exchange Board of India (Sebi) is exploring a pilot to tokenize corporate bonds as the regulator seeks to deepen India's debt markets, chairman Tuhin Kanta Pandey said on Tuesday.

"We are exploring a pilot for tokenization of corporate bonds," Pandy said at the Care Edge Debt Market Summit 2026 in Mumbai. "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."

Tokenization refers to the conversion of real-world financial assets into digital tokens recorded on distributed ledger technology (DLT) systems such as blockchain networks, which allow mu...