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India unveils blockchain platform for debenture covenant monitoring

On Saturday, SEBI (Securities and Exchange Bureau of India) – India’s capital market regulator – rolled out the Distributed Ledger Technology (DLT) based blockchain platform for tracking debenture covenants.

Intended at guaranteeing complete transparency in the debenture market, the platform will draw issuers and debenture trustees on a common platform to document asset charges and also track the asset cover ratio and several associated covenants.

The data recorded in the platform will get signed cryptographically, time-stamped, and serially included in the ledger. It would also offer a factual audit trail of dealings, thereby enhancing trust in the market.

Professionals stated that the transparency in debentures’ release will aid in luring overseas capital inflows into the bond market of the country.

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