At a glance
Industry
Capital Markets
Location
India
Challenge
Develop a blockchain-based platform to enhance the monitoring, security and governance of corporate bonds to bring more discipline, standardization and transparency to the market.
Products and services
Cognizant Digital Engineering services
Success Highlights
- 4291 issuers onboarded on the DLT platform
- 6368 secured ISINs mapped with assets by issuer, covering almost 90% of the outstanding secured ISINs
- Mapping approved for 6366 secured ISINs by debenture trustee, representing more than 95% ISINs mapped by issuers
Our approach
To ensure transparency and enable zero reconciliation, the blockchain-backed permissioned platform had to include all key stakeholders: debenture trustees, issuers, rating agencies and regulators.
We developed dedicated role-based portals for debenture trustees and issuers and the ability to generate alerts/notifications on corporate events, timeline breaches and more. Salient features of the implementation include International Securities Identification Number (ISIN) mapping to assets, asset charge creation, reports and document management, title search, valuation, issuance of annexure documents required by exchanges and the ability to record charge payments and charge closures, including an audit log.
The solution was jointly designed and developed by Cognizant, along with NSDL architects, product managers, business analysts, developers and quality assurance engineers. Infrastructure set-up and support was provided by NSDL.
Business outcomes
Today, NSDL brings discipline, standardization and transparency to capital market customers by maintaining electronic book entries for the ownership and transfer of securities.
Meeting goals for issuer-trustee transparency
NSDL’s DLT platform enables discipline and greater transparency to debenture assets and charges by diligently reporting the asset status. Asset securities are validated by the debenture trustees and are undisputable, and transactions recorded as periodic changes to the debenture status are monitored.
As another benefit, NSDL can prevent “over charging on the same asset” which happens when one loan security is not uniquely identifiable and used for multiple debts. The new feature prevents this from happening by performing the appropriate checks and balances.
NSDL’s new DLT platform delivered the following business outcomes*:
- 4291 issuers onboarded on the DLT platform.
- 3500+ issuers completed mapping of all their outstanding ISINs with assets.
- 5413 assets created for which mapping with ISIN is performed.
- 6368 secured ISINs mapped with assets by issuer, covering almost 90% of the outstanding secured ISINs.
- Mapping approved for 6366 secured ISINs by debenture trustee, representing more than 95% ISINs mapped by issuers.
- Cashflow information recorded for 6051 ISINs by issuers.
