DeFi and Asset Tokenization in India:
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
The Integration of Distributed Ledger Technology in Capital Markets
The digitalization of Indian financial assets is expanding beyond standard dematerialization. Distributed ledger technology (DLT) is being tested under regulatory supervision. Analysts at SP RESEARCHVIA PVT. LTD. review this sandbox transition.
What is SEBI's stance on equity tokenization and DeFi in India?
SEBI is evaluating tokenized securities and smart contract frameworks through its regulatory sandbox. This allows fintech firms to test blockchain-based settlements, fractionated asset ownership, and ledger integrity in a controlled environment.
Fractional Ownership and Retail Access
Tokenization enables the division of large assets (like commercial real estate or premium bonds) into smaller fractions. This allows retail investors to access high-yield assets with lower initial capital requirements.
Risk and Security Considerations
Ledger security, smart contract vulnerabilities, and regulatory compliance are the primary challenges. Any test system must integrate KYC/AML controls to protect investor capital from unauthorized transfers.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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