To enhance transparency in the voting process, NSE Thursday announced that it is conducting tests to use blockchain for e-voting for listed companies.
The test would involve setting up a blockchain to connect the markets regulator Sebi with the company and the RTA (registrar and transfer agent) during the voting process.
The voting rights will be tokenised, thus making them easy to transfer, NSE said in a statement.
Tokenising of voting means a form of digital envelope which allows only end voter to open it, which helps in preventing tampering of the data.
Sankarson Banerjee, CTO-Projects, NSE said, "The immutable nature of blockchain will ensure that every action taken by a network participant is transparent to the regulator."
The blockchain will be built using Elemential platform on Hyperledger framework, NSE said.
Raunaq Vaisoha, CEO, Elemential Labs platform said, "Blockchain enables a real-time, immutable trail of all activities for the regulator. This brings us a step closer to highly transparent and clear corporate governance; an operating standard that most companies aspire to."
Hyperledger framework is an open source collaborative effort created to advance cross-industry blockchain technologies.
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