REC Limited has issued ₹500 crore of corporate bonds through India’s first pilot program for tokenized securities. The issue was oversubscribed approximately 8 times, reflecting strong investor demand for digital asset infrastructure.

The Rural Electrification Corporation (REC) executed the issuance under the Securities and Exchange Board of India (SEBI) Regulatory Sandbox Framework. This pilot marks a structural shift in debt market operations by introducing atomic Delivery-versus-Payment (DvP) settlement on a permissioned distributed ledger.

Issue Structure and Market Response

The bond issue consisted of a base size of ₹100 crore with an over-subscription option (green shoe) of ₹400 crore. Bidding took place on the electronic bidding platform of the National Stock Exchange of India Limited (NSE).

Investors bid for ₹796 crore against the ₹500 crore allotment. REC accepted the full amount at a coupon rate of 7.30% per annum for a tenor of 1 year and 9 months. The bonds are listed on both NSE and BSE Limited.

Operational Efficiency and Settlement

The tokenized mode enabled same-day pay-in, allotment, and listing of the bonds. Rajesh Kumar, Director (Finance) at REC, highlighted that the Demat 2.0 initiative leverages distributed ledger technology and CBDC-enabled settlement to eliminate settlement risks and operational friction.

The issuance involved coordinated efforts from SEBI, the Reserve Bank of India (RBI), and Market Infrastructure Institutions including NPCI, depositories, and stock exchanges. Kumar noted that this framework preserves existing investor protections while enhancing market efficiency through shared-ledger transparency.

What the Numbers Show

The 8x oversubscription ratio indicates significant liquidity depth for innovative debt instruments. By accepting the full ₹500 crore at a fixed 7.30% coupon despite higher bidding interest, REC secured cost-effective funding while validating the technical viability of atomic DvP settlement in Indian capital markets.

REC Limited has declared the voting results for its 57th Annual General Meeting held on August 25, 2026. The company confirmed that all resolutions were approved by shareholders with the requisite majority.

The virtual meeting commenced at 11:00 am and concluded at 12:07 pm. Shareholders were provided an e-voting facility from August 22 to August 24, 2026. The portal remained open for an additional 15 minutes post-meeting until 12:22 pm to allow further votes.

Key Resolutions Approved

Shareholders approved the adoption of audited financial statements for FY26 and several board appointments. Statutory auditors Kailash Chand Jain & Co. and SCV & Co. LLP issued an unqualified report on the standalone and consolidated financials for the year ended March 31, 2026.

Board Appointments

The special business segment saw the approval of the following director appointments:

• Thangarajan Subash Chandira Bosh as Director (Projects)
• Rajesh Kumar as Director (Finance)
• Rajesh Kumar Agarwal as Nominee Director of Power Finance Corporation Limited

Three independent directors—Dr. Anil Kumar Gupta, Dr. Kanchiappan Ghayathri Devi, and Smt. Poonam Chauhan—were appointed via special resolutions. Shri Shashank Misra was re-appointed as a Government Nominee Director upon retiring by rotation.

Governance and Compliance

Secretarial auditors noted that the Board composition lacked the requisite number of Independent Directors during certain periods in FY26. Management clarified that as a Government Company, director appointments are vested with the President of India through the Ministry of Power.

The Chairman released the company’s third ESG report for FY26. Shareholders engaged with management on topics including the proposed merger with Power Finance Corporation Limited, CSR initiatives, and borrowing strategies.