The National Stock Exchange (NSE) has achieved a significant milestone by facilitating India's inaugural tokenised corporate bond issuances. This groundbreaking development saw public sector entity REC Ltd and private sector conglomerate Larsen & Toubro Ltd (L&T) collectively raise ₹1,000 crore. The transactions were conducted via the NSE's Electronic Bidding Platform (NSE EBP) and operated under the Securities and Exchange Board of India's (SEBI) Regulatory Sandbox Framework, marking the first application of tokenisation technology for corporate bonds on the NSE EBP.
Unveiling Tokenisation Technology
The underlying tokenisation technology was formally introduced on September 10, 2026, at the Global Fintech Fest in Mumbai. The unveiling ceremony was graced by Shri Sanjay Malhotra, Governor of the Reserve Bank of India, and Shri Tuhin Kanta Pandey, Chairman of SEBI, underscoring the regulatory support and strategic importance of this innovation for India's financial markets.
REC Limited's Pioneering Issuance
REC Limited spearheaded the tokenised bond market entry with an issuance on NSE EBP. The base issue was set at ₹100 crore, with a green shoe option allowing for an additional ₹400 crore. The offering garnered substantial interest, receiving subscriptions 7.9 times the base issue amount. Ultimately, REC accepted ₹500 crore at a competitive coupon rate of 7.30 percent.
Key participants in REC's bidding process included State Bank of India, SBI DFHI, Larsen & Toubro, AK Capital Finance, HDFC Mutual Fund, TaurrusFinsec, The Wealth Company Mutual Fund, and Central Depository Services (India). A consortium of arrangers facilitated the issuance, comprising AK Capital Services, Axis Bank, HDFC Bank, ICICI Bank, ICICI Securities Primary Dealership, PNB GILTS, SBI Capital Markets, STCI Primary Dealer, Taurus Corporate Advisory Services, Trust Investment Advisors, and Yes Bank.
Larsen & Toubro's Contribution
Following REC's successful venture, Larsen & Toubro Limited (L&T) executed its own ₹500 crore tokenised corporate bond issuance on NSE EBP. L&T's participation as a private sector issuer highlights the broad applicability of tokenisation technology and signals its potential for wider adoption across the corporate bond market. The bidding process for L&T's issuance saw engagement from State Bank of India, Yes Bank, HDFC Mutual Fund, SBI Mutual Fund, and National Securities Depository Limited. Trust Investment Advisors, Axis Bank, and Yes Bank served as arrangers for this issuance.
The Promise of Tokenisation
Tokenisation involves representing and managing securities digitally using Distributed Ledger Technology (DLT), commonly known as blockchain. This innovative approach is designed to introduce several efficiencies, including facilitating atomic settlement, enhancing transparency across the securities lifecycle, and improving overall operational efficiency, all while integrating with India's robust existing digital settlement infrastructure.
Viral Mody, Executive Director at NSE, commented on the achievement, stating, "The successful implementation of tokenisation technology for corporate bonds with India’s first-ever tokenised bond issuances by REC and L&T on NSE EBP, marks another important milestone in this journey and demonstrates our ability to translate emerging technologies into scalable solutions for regulated market infrastructure." Mody also acknowledged the emphasis placed on tokenisation by Prime Minister Shri Narendra Modi at the Global Fintech Fest, crediting SEBI and RBI for their continuous guidance in fostering responsible innovation.
Established in 1994, the Mumbai-based NSE was India's pioneer in electronic, screen-based trading. It operates with a fully integrated business model that encompasses exchange listings, trading, clearing and settlement services, as well as indices and market data feeds. The exchange also ensures compliance among its members and listed companies with regulatory frameworks set by SEBI and the exchange itself.