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Indian MP Raghav Chadha Urges Tokenization Bill to Open Fractional Ownership

Backers say clear rules could keep wealth creation in India by letting small savers buy slices of assets now out of reach.

Overview

  • Speaking in the Rajya Sabha, Chadha proposed dedicated legislation and a supervised sandbox to test models for dividing assets like real estate, infrastructure and intellectual property into digital units.
  • He framed the measure as financial inclusion for the middle class, likening its potential impact to UPI’s expansion of everyday digital payments.
  • Industry voices, including India Blockchain Alliance’s Raj Kapoor, called a tailored law a strategic necessity to align tokens with securities and contract rules and to prevent value migrating offshore via SPVs.
  • Global momentum was cited, with references to SEC-aligned pathways, Singapore’s Project Guardian, EU MiCA, UAE VARA, and initiatives by BlackRock, Franklin Templeton and major banks.
  • The proposal’s path remains unclear as the central government has not indicated support and SEBI has not set out a framework, with current Indian pilots limited and regulators emphasizing investor protection and settlement risks.