The Securities and Exchange Board of India (SEBI) is stepping up its use and oversight of emerging technologies in the securities market, working to implement a global supervisory toolkit for artificial intelligence while also moving ahead with a pilot for tokenised corporate bonds, Chairman Tuhin Kanta Pandey said on Thursday.
SEBI is working on implementing the International Organization of Securities Commissions' (IOSCO) supervisory toolkit for AI use in the Indian securities market to strengthen risk management and support an agile AI governance framework, Pandey said at the Global Fintech Fest 2026. The regulator had earlier said the IOSCO toolkit would be integrated into its AI strategy for regulated entities.
At the same time, SEBI and the Reserve Bank of India are set to launch a pilot for tokenisation of corporate bonds under Demat 2.0. The project combines tokenised securities, settlement through central bank digital currency (CBDC) and smart-contract functionality, and will explore faster settlement as well as automation of parts of asset servicing.
Pandey said three issuers have already issued tokenised corporate bonds under Demat 2.0 over the past few days.
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