Raghav Chadha, Member of Parliament from the Aam Aadmi Party, has introduced a Private Member’s Bill titled the Asset Tokenisation (Regulation) Bill, 2026 in the Parliament of India, seeking to create a comprehensive legal framework for tokenised real-world assets in the country. The proposed legislation aims to bring regulatory clarity, transparency, and investor protection to the rapidly evolving ecosystem of asset tokenisation.

A Framework for the Emerging Digital Asset Economy

Announcing the introduction of the Bill, Chadha described it as a forward-looking legislative initiative designed to integrate technological innovation with regulatory safeguards. Asset tokenisation refers to the process of converting ownership rights in real-world assets—such as real estate, commodities, artwork, or financial instruments—into digital tokens recorded on blockchain or distributed ledger systems.

The proposed law seeks to formally recognise asset tokenisation within India’s legal framework. With digital finance and blockchain-based investment platforms gaining popularity worldwide, the Bill attempts to address the regulatory vacuum surrounding tokenised assets and ensure that such instruments operate within a structured legal regime.

Key Features of the Proposed Bill

The Asset Tokenisation (Regulation) Bill, 2026 outlines several core provisions aimed at building a transparent and regulated ecosystem for tokenised assets.

Legal Recognition of Tokenised Assets

One of the central features of the Bill is the formal legal recognition of asset tokenisation in India. This provision would clarify the status of digital tokens representing real-world assets and remove uncertainty surrounding their ownership, transferability, and enforceability under existing laws.

Statutory Framework for Issuance and Trading

The Bill proposes the creation of a statutory framework governing the issuance, trading, custody, and settlement of tokenised real-world assets. Such a framework would likely include rules for token issuers, trading platforms, custodians, and intermediaries involved in the tokenisation ecosystem.

By establishing clear procedures and compliance requirements, the legislation aims to bring standardisation and accountability to the market.

Regulatory Oversight and Supervision

Another significant component of the Bill is the introduction of regulatory oversight over tokenised asset markets. The proposed regime would enable authorities to supervise the functioning of token issuance platforms and digital asset marketplaces, thereby ensuring that operations remain transparent and compliant with financial regulations.

Regulatory monitoring is expected to reduce risks associated with fraud, market manipulation, and unregulated trading.

Investor Protection Measures

Investor protection forms a key pillar of the proposed legislation. The Bill seeks to ensure that participants in tokenised asset markets receive adequate disclosures, safeguards, and legal remedies. This includes mechanisms designed to maintain market integrity and protect investors from potential misuse of tokenisation platforms.

Balancing Innovation with Financial Stability

According to the proposal, the legislation also aims to promote innovation in digital finance while maintaining overall financial stability. By regulating tokenisation rather than restricting it outright, the Bill attempts to encourage responsible technological adoption within India’s financial system.

Growing Global Interest in Tokenisation

Globally, asset tokenisation has been gaining momentum as financial institutions explore blockchain-based mechanisms to fractionalise ownership and improve liquidity in traditionally illiquid assets such as real estate and fine art. Tokenisation allows assets to be divided into smaller units, enabling broader investor participation and easier trading.

However, the absence of clear regulatory frameworks in many jurisdictions has created legal uncertainties regarding ownership rights, taxation, compliance obligations, and investor protections.

The introduction of the Asset Tokenisation (Regulation) Bill, 2026 reflects India’s attempt to address these challenges by developing a structured regulatory approach to digital asset innovation.

Significance of the Private Member’s Bill

While Private Member’s Bills rarely become law without government backing, they often serve as important policy proposals that stimulate debate and influence future legislation. The introduction of this Bill could spark discussions within Parliament and among regulators about the future of blockchain-based financial instruments in India.

If taken forward, the proposed framework could play a significant role in shaping the regulatory environment for digital assets and tokenised investments in the country.

Outlook

The Asset Tokenisation (Regulation) Bill, 2026 represents one of the first legislative attempts in India to address the legal and regulatory aspects of tokenised real-world assets. As blockchain technology continues to reshape financial markets globally, the Bill highlights the growing recognition among policymakers of the need to regulate emerging digital asset ecosystems while encouraging innovation.

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