New Delhi, Sept. 10 -- The Securities and Exchange Board of India (SEBI) has launched "Demat 2.0", a pilot project to test the tokenisation of corporate bonds using distributed ledger technology (DLT).

The initiative was announced jointly by RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey at the Global Fintech Fest in Mumbai, according to a press release issued by SEBI on Thursday along with FAQs detailing how the pilot will work.

Here's what investors need to know.

Demat 2.0 is a pilot for the next generation of financial market infrastructure that allows corporate bonds to be issued, held, traded and settled in tokenised form using Distributed Ledger Technology.

According to the release, "The pilot does not change ...