Mumbai: To make the process of storing records related to securities traded in the market safer, on Wednesday asking for deposits to use distributed ledger technology – called Blockchain technology – to record and monitor credit rating from non-convertible debentures (NCD) and Creation of accusations in this securities is like an appointment, among others.
Ledger technology is distributed has the potential to provide a more resilient system than a centralized traditional database, said the market regulator in a statement.
It offers better protection against various types of cyberattack because of its distributed nature, which eliminates one point of the possibility of an attack, he said.
Sebi said that the platform for the security monitoring system and agreement, which was organized by depositor, was being developed.
The use of blockchains for these purposes on a new platform will be effective on April 1, 2022.
Among other things, the new system will help in the continuing monitoring of NCD credit ratings by institutions.
“Systems that use Blockchain technology for non-convertible securities along with the underlying assets will be made and all costs and asset assessment transactions must be recorded by each entity including issuers, debtion supervisors and credit rating agencies,” said Sebi.