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REC raises ₹500 crore through a tokenised-bond pilot

English हिंदी ಕನ್ನಡ മലയാളം தமிழ் తెలుగు

First brief 8 Sep, 10:57 am IST Updated 8 Sep, 10:57 am IST 1 development 2 min read Latest ↓

File photograph of REC’s office in Delhi; not a photograph of the bond transaction — Photo: Sumita.saha / Wikimedia Commons · Public domain

Where it stands

REC raised ₹500 crore through a tokenised corporate-bond pilot on 7 September 2026. The issue operated under the Securities and Exchange Board of India’s regulatory sandbox. The bonds pay an annual coupon of 7.30% for 1 year and 9 months. REC reported payment, allotment and listing on the same day. Ownership records use a permissioned distributed ledger. The pilot tests the machinery for issuing and settling a regulated bond. The issue is not a launch of a public cryptocurrency.

Background

A corporate bond is a company’s borrowing from investors. Tokenisation represents the claim on a programmable digital ledger. A permissioned ledger allows only authorised participants to access specified functions. The bond still carries the issuer’s repayment obligation. Faster settlement does not remove the risk of default or changes in market price. The pilot combines new record-keeping technology with existing investor protections.

How it developed

7 September 2026: pilot issue

How it started
REC accepts ₹500 crore in the supervised pilot

REC issued the pilot bonds on 7 September 2026. Bids totalled ₹796 crore. The offer had a ₹100-crore base with room for another ₹400 crore. REC accepted ₹500 crore at a 7.30% annual coupon. The stated term is 1 year and 9 months. The reported roughly 8-fold subscription refers to the base offer, not the final ₹500 crore.

REC Limited Business Standard
7 September 2026: settlement and listing

New fact
Same-day settlement links the bond transfer with payment

REC reported same-day payment, allotment and listing. The bonds were listed on the National Stock Exchange and BSE. The pilot used delivery-versus-payment and a shared ownership ledger. REC described settlement using central bank digital currency. The system links delivery of the bond with payment. The design addresses settlement risks, not every risk faced by an investor.

REC Limited Bank for International Settlements Business Standard

Why it matters for UPSC

GS3 · Financial marketsGS3 · Digital financial infrastructure

For GS3, distinguish an asset from the technology used to record and transfer the asset. Delivery-versus-payment reduces the risk of paying without receiving the bond. A controlled pilot does not prove unrestricted retail access or a nationwide rollout.

Key terms

Tokenised bondA borrowing claim represented on a programmable digital ledger. The digital record does not turn the bond into an unregulated cryptocurrency.

Regulatory sandboxA controlled setting for testing an innovation under a regulator’s oversight. Permission for a pilot is not blanket permission for every product or participant.

Delivery-versus-paymentA settlement arrangement linking the transfer of a bond with its payment. Atomic settlement completes the linked transfers together or does not complete the exchange.

CouponThe interest rate stated for a bond. REC’s pilot carries a 7.30% annual coupon; the coupon is not a guaranteed resale return.

Permissioned distributed ledgerA shared digital record with access governed by permissions. The system differs from a public network open to anyone.

Central bank digital currencyDigital money issued by a central bank. Using this money to settle a bond is different from issuing a private cryptocurrency.

Sources (3)

REC Limited · official · Signed exchange filing: tokenised corporate-bond pilot, 7 September 2026 (issuer document mirrored by BazaarWatch)8 Sep, 10:54 am
Business Standard · India’s first tokenised bond: what changes when debt moves to blockchain?8 Sep, 10:54 am
Bank for International Settlements · official · Anchoring trust in money: innovation beyond stablecoins8 Sep, 10:54 am