SEBI Bond Tokenisation | UPSC Updates | Qualify IAS

Important For Prelims - Economy

SEBI Bond Tokenisation

1) SEBI + RBI will test digital tokens for bonds.

2) A bond can be represented as a digital token on a shared digital record (blockchain).

3) This can make buying/selling bonds faster and easier.

4) It can reduce costs and paperwork.

5) Smart contracts may automate interest/coupon payments.

6) It is only a pilot project, not a new bond market.

Most important read about Bonds, their importance and relation with interest rates and, other capital instruments .