Larsen & Toubro (L&T) has become the first private sector corporate in India to raise ₹500 crore through tokenised bonds with a three-year tenure under the Securities and Exchange Board of India’s (SEBI) newly introduced blockchain-based tokenisation framework.
The transaction marks a step towards the digital transformation of India’s corporate bond market, with SEBI’s framework enabling corporate bonds to be tokenised using Distributed Ledger Technology (DLT).
DLT enables digital bond issuance
The framework is aimed at improving transparency, efficiency and digitalisation in the corporate bond market. It is also intended to facilitate wider participation and potentially improve liquidity in the market.
The bond issuance and related processes use DLT-based infrastructure, while settlement of funds is facilitated through a Central Bank Digital Currency (CBDC) wallet.
CBDC supports settlement
The integration of tokenised securities with CBDC-based settlement infrastructure is expected to enable more seamless, secure and efficient digital capital-market transactions.
For L&T, the transaction represents a milestone in its continued adoption of technology-led solutions in capital raising and treasury operations.
Focus on transparency and efficiency
The use of DLT is expected to streamline the recording and management of bond transactions while improving transparency across the process.
The transaction also supports the broader evolution of India’s corporate debt market towards greater digitalisation and technology-enabled capital-market infrastructure.