Market participants believe the framework could benefit both issuers and investors, though the biggest incremental gains may come for retail investors.
Similarly, companies raised ₹11,343 crore in public debt, forming 1% of debt raised through private placement worth ₹9 trillion. Industry executives believe tokenization could gradually improve liquidity by lowering ticket sizes and widening investor participation.
“Liquidity in the bond segment may not increase overnight but this is a clear sign that the central government and the market regulator want to deepen India’s debt market. We are expecting some impact on liquidity,” said Vineet Agrawal, co-founder of investment platform Jiraaf.
Retail investors were often unable to purchase bonds due to their high ticket sizes. However, with tokenization ticket sizes or face value of a bond may reduce, helping the segment gain traction from investors with smaller pools of capital. For instance, a bond with a face value of ₹100,000 could be bought in the form of a token worth ₹1000.
