L&T
L&T breaks new ground: India’s first private corporate to issue Tokenised Bond
Larsen & Toubro (L&T) has become the first private sector corporate in India to raise ₹500 crore through tokenised bonds with a 3-year tenure, under the Securities and Exchange Board of India’s (SEBI) newly introduced blockchain-based tokenisation framework.
SEBI’s pioneering initiative enables the tokenisation of corporate bonds using Distributed Ledger Technology (DLT), marking a significant step towards the digital transformation of India’s corporate bond market.
The company said the framework is aimed at enhancing transparency, efficiency and digitalisation, while facilitating wider participation and potentially improving liquidity in the corporate bond market.
The bond issuance and related processes leverage DLT-based infrastructure, with settlement of funds facilitated through a Central Bank Digital Currency (CBDC) wallet. The integration of tokenised securities with CBDC-based settlement infrastructure represents an important advancement towards more seamless, secure and efficient digital capital-market transactions.
The transaction represents an important milestone in L&T’s continued adoption of technology-led solutions in its capital-raising and treasury operations.
"The use of DLT is expected to enable a more streamlined and transparent framework for recording and managing bond transactions, while supporting the evolution of India’s corporate debt market," the company said in a statement.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
