Madhabi Puri Buch, the head of India’s securities regulator SEBI, announced that the National Securities Depositary (NSDL) has gone live with a blockchain system to monitor the health of bond issuances. The launch of the ‘Security and Covenant Monitoring System’ was unveiled during the weekend’s 25th-anniversary celebration of NSDL, one of India’s two depositories. The NSDL is hosting the blockchain network with the Central Securities Depositary (CSDL).
Blockchain is being used to immutably log the status of corporate bonds and other listed debt securities and share it transparently. For example, when a bond includes a charge over assets, every six months there needs to be an audit of the assets, and this audit information would be added to the blockchain. Other data to be logged includes interest payments and credit rating data.
By using blockchain, fraud may be reduced. For example, the credit rating agency will confirm the validity of any press release related to its credit report.
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