09 May 2022 09:17, UTC
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Blockchain technology for bonds is starting to be used by National Securities Depository Ltd. – the largest of India’s depositories. Where is the place for high technology?
National Securities Depository Ltd.or NSDL introduced a blockchain platform for a debt monitoring system that will enable better bond tracking. The decentralized registry of the monitoring system guarantees the immutability and verifiability of the transaction log between trustees and issuers.
NSDL itself and Central Depository Services Ltd. (abbreviated CDSL) will serve as the node operators responsible for making the network operational. Madhabi Puri Buch, head of the Securities and Exchange Board of India (SEBI), notes that other regulated entities will also be able to join the network as node operators. The idea of blockchain integration comes from SEBI – in August 2021, the Board mandated that securities depositories use blockchain for securities.
All bond information, including collateral and coverage ratio data, previously stored in centralized databases will now be cryptographically signed, time-stamped and added to a decentralized registry.
For reference, National Securities Depository Ltd ( NSDL ) is India’s oldest operating depository, controlling nearly 90% of the market share, measured in securities value.
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