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An Indian lawmaker has brought the idea of a national “Tokenization Bill” into Parliament, arguing that India needs clear rules for fractional ownership of high-value assets like real estate. The intervention, made in the Rajya Sabha by AAP MP Raghav Chadha on December 16, frames tokenization as a way to widen access for middle-class investors while keeping capital and data onshore.
FinanceFeeds’ report detail speech, saying Chadha urged a bespoke law with definitions, compliance controls, and a regulatory sandbox. He described a framework where large assets are split into small digital units and traded under clear investor-protection rules, rather than via unregulated overseas platforms or ad-hoc structures.
A CoinMarketCap Academy brief summarize proposal and adds that the MP linked tokenization to financial inclusion, similar to how UPI expanded digital payments. The note says the push targets real estate and infrastructure in particular, suggesting a pathway for compliant fractional ownership that can plug into domestic custody, KYC, and settlement rails.
The legal backdrop is uneven today. India lacks a single, codified statute for asset tokenization; oversight is spread across sector regulators and general securities or property law. By contrast, within Gujarat’s GIFT City, the International Financial Services Centres Authority (IFSCA) has already begun to build a dedicated regime. IFSCA’s consultation paper outline approach to RWA tokenization—explicitly including real estate—through sandbox testing, disclosure norms, and AML/KYC alignment.
For real-estate tokenization, a national law could settle the hardest issues: tying tokens to title/lease records, standardizing SPV structures, enabling escrowed flows (rent, dividends), and clarifying secondary transfers under Indian jurisdiction. A codified framework would also give banks and trustees confidence to service offerings, while state registries explore digital links that keep land-record integrity intact.
“Asset tokenization is one of the most transformative financial innovations of the 21st century,” said Raghav Chadha, Member of Parliament (AAP), during his upper-house remarks. He argued that without domestic rules, Indian assets risk being tokenized abroad, limiting investor protection and policy oversight.
Past discussions on digital markets have focused on trading taxes and exchange rules. The parliamentary reference shifts attention to real-world assets—especially property—where clear, onshore rails could unlock broader participation without compromising title certainty. If the government takes up the idea, expect follow-through via a sandbox-to-statute path: test models under IFSCA-style supervision, then harmonize standards nationwide so real-estate tokenization can scale under one rulebook.
