NSDL Unveils Blockchain Platform for Debenture Covenant Monitoring

National Securities Depository Limited

The National Securities Depository Limited (NSDL) rolled out Distributed Ledger Technology (DLT) blockchain platform for debenture covenant monitoring in order to ensure transparency.

Madhabi Puri Buch, Chairperson, Securities and Exchange Board of India (SEBI), said, “Demat revolution was the very first step by which entire market adopted technology. This day will also be remembered as an important day as we are taking the first step in terms of the use of DLT in the markets.”

The platform will bring issuers and debenture trustees on a common ground to record asset charges as well as monitor the asset cover ratio.

According to NSDL, the depository will be encouraged to embrace new technologies and build the critical market infrastructure for the security and covenant monitoring of bond issuances.

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Padmaja Chundru, Managing Director & CEO, NSDL, said, “NSDL has 57,000 service centres across India. There are more than 27 million demat accounts and the value of securities is more than $4 Trillion; this will reach $5 trillion very soon.”

NSDL had opened the first demat in India in 1996.

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