Blockchain Technology has been earning the fancy of many Governments and industries across the globe. Joining in on the list of adopters is the National Stock Exchange of India Limited (NSE), who is currently testing the use of blockchain for E-voting for listed companies on Elemential Labs platform.
In July 2012, The stock market regulator of the country, SEBI mandated that the top 500 listed companies should employ E-voting to facilitate the shareholders participate in key decisions without being physically present in the meetings. The E-voting is carried through an electronic voting system developed by National Securities Depository Limited (NSDL) and CDSL Ventures Ltd (CVL). The system requires no physical collection, no counting of postal ballot papers and eliminated the need for verification of signatures of the participants.
Now, NSE is aiming to enhance the transparency in the E-voting process by collaborating with Elemential Labs. NSE IT, the Systems Integrator (SI) partner is managing and building the front-end application. A pilot of the same has been conducted and involves setting up a blockchain to connect the regulator with the companies and the Register and Transfer agent (RTA) during the voting process.
The voting rights will be easy to transfer and proxy as they will be tokenized. The subsequent test will be evaluated on the basis of transparency and audit-ability provided by the blockchain and the ease of conducting the whole process.
Sankarson Banerjee, CTO-Projects, NSE Stated:
“The immutable nature of blockchain will ensure that every action taken by a network participant is transparent to the regulator. Additionally, the smart contract framework enables synchronisation of the vote count process between the company and the regulator in real time. These features will take us closer to an environment of improved corporate governance and compliance.”
The Elemential Labs will use the Elemential platform on the Hyperledger framework to construct the blockchain. The CEO of the firm, Raunaq Vaisoh, states that Hyperledger has recognized that it has to separate itself from permissionless ledgers like Bitcoin and Ethereum in order for blockchain to get mainstream adoption in the enterprise world, He further adds:
“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.”
While Cryptocurrencies are still getting a stink eye from many sources, those sources are openly accepting the underlying technology, the blockchain. While the highest authority of India is still deciding over the crypto – crackdown imposed by the central bank of the country, India is rapidly employing the technology is many sectors as well.
Recently, NIIT Technologies, an IT solution provider launched a blockchain-based solution for airlines to make ticket buying transactions more simplified, dubbed as Chain-m.
Stepping up several states including Telangana, Andhra Pradesh, Karnataka, Maharashtra, Rajasthan, and Kerala have either published a whitepaper or are working on the PPP model of blockchain projects in e-governance and other projects.
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