SEBI has revised the objective and eligibility criteria of its innovation sandbox to encourage innovation and participation.
A regulatory sandbox is a framework set up by a regulator that allows FinTech start-ups and other innovators to conduct live experiments in a controlled environment under a regulator's supervision.
Promoting innovation
SEBI has formed a committee that would supervise the operations of the innovation sandbox. Also, it would process the applications submitted by sandbox applicants and approve or reject applications and assign lead enabling organisations.
The regulator had issued a framework for innovation sandbox in May 2019 with the intent to promote innovation in the securities market.
“Based on learnings since then and to make it even more convenient for participation in the innovation sandbox, revised graded entry norms have been designed with the objective of promoting innovation both in terms of new products and services as well as new ways of delivering existing products and services,” a statement issued by SEBI said on Wednesday.
With inputs from PTI