India’s market regulator is reviewing whether listed debt securities should face disclosure requirements similar to those imposed on listed equities, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said at an event on Tuesday.
The move is aimed at improving transparency and investor protection in India’s debt market as policymakers push to deepen the country’s corporate bond ecosystem, which remains less developed than the equity market.
Pandey made the remarks during an event where he also outlined SEBI’s plans to pilot the tokenisation of corporate bonds as part of broader efforts to modernise the market infrastructure.
SEBI reviewing disclosure norms for listed debt
According to Pandey, SEBI is examining whether disclosure standards for listed debt securities should be brought in line with those applicable to listed equities.
He said the regulator is reviewing the framework to enhance transparency and strengthen investor protection in debt markets.
The proposal comes as regulators and policymakers seek to encourage greater participation in India’s corporate bond market.
The market has historically lagged behind the equity segment in terms of depth, participation, and liquidity.
Pandey noted that the review is part of wider reforms being considered by the regulator to make the debt market more efficient and investor-friendly.
Push to deepen India’s corporate bond market
India’s corporate bond market remains relatively underdeveloped when compared with the country’s equity markets.
The regulator’s latest review reflects ongoing efforts to improve market confidence and attract wider investor participation in debt instruments.
By considering stricter disclosure requirements, SEBI aims to create a more transparent environment for investors in listed debt securities.
The move could also help align reporting standards across different segments of the capital market, ensuring investors receive clearer and more consistent information.
SEBI explores tokenisation pilot for bonds
Alongside disclosure reforms, Pandey said SEBI is also exploring a pilot project for the tokenisation of corporate bonds.
According to him, the rollout of the pilot is expected within the next six to nine months.
The initiative forms part of the regulator’s broader strategy to modernise India’s financial markets through the use of digital technology.
Tokenisation involves converting securities such as corporate bonds into digital tokens on a shared digital ledger.
The process is expected to make trading more efficient by enabling faster and cheaper transactions while improving transparency.
Digital ledger technology may improve settlements
Pandey said the use of digital ledger technology could enable near-instant settlements in the corporate bond market.
The technology is expected to streamline settlement processes and reduce operational inefficiencies associated with traditional systems.
The regulator believes that introducing tokenisation could improve market accessibility and support the long-term development of the corporate bond segment.
SEBI’s review of disclosure standards and its plans for tokenised bonds underline the regulator’s efforts to strengthen India’s debt markets while adopting new technologies to improve efficiency and transparency.
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