India unveils blockchain platform for debenture covenant monitoring-Xinhua

India unveils blockchain platform for debenture covenant monitoring

Source: Xinhua| 2022-05-08 00:11:30|Editor: huaxia

MUMBAI, May 7 (Xinhua) -- India's capital market regulator on Saturday unveiled the Distributed Ledger Technology (DLT) blockchain platform for debenture covenant monitoring.

Aimed at ensuring total transparency in the debenture market, the platform will bring issuers and debenture trustees on a common ground to record asset charges as well as monitor the asset cover ratio and various related covenants.

The information stored in the system will be cryptographically signed, time stamped and sequentially added to the ledger.

It would provide a verifiable audit trail of transactions, thus strengthening confidence in the market.

Experts said the transparency in debentures' issue will help attract foreign capital inflows into the country's bond market.

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