India’s markets regulator, SEBI, is charting a comprehensive reform agenda that includes redesigning securities lending, piloting bond tokenisation using blockchain technology, and modernising market infrastructure to deepen and streamline capital markets.
India’s markets regulator is preparing a broader technology-led overhaul that would touch securities lending, corporate bond trading and the way intermediaries connect with the market, as Tuhin Kanta Pandey sets out a reform agenda aimed at deepening capital markets. According to the Securities and Exchange Board of India’s annual report, the Securities Lending and Borrowing scheme needs a redesign to improve price discovery and strengthen links between the cash and derivatives segments.
The review matters because the securities lending framework sits at the heart of short selling and liquidity provision. Under the system, investors can lend shares to other participants for a fee, with the borrower later returning equivalent stock. Business Standard reported that SEBI is reviewing both short-selling and SLB rules as part of a push to make markets more efficient and more attractive to investors.
SEBI is also preparing a pilot project for the tokenisation of corporate bonds using distributed ledger technology, a move that could bring faster settlement and better transparency to India’s debt market. Financial Express and NDTV Profit said the pilot is expected to begin within six to nine months, while Business Standard reported that the regulator is already examining how tokenisation could improve operational efficiency.
Alongside that, the regulator is working on a Setu portal and a wider modernisation of its market-intermediary interface. NDTV Profit reported that the reform push also includes a new framework for debt brokers, underscoring SEBI’s aim to make the corporate bond market more accessible and better regulated.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
