Shubham Gupta, a 4th year Student at Institute of Law, Nirma University, Ahmedabad.
Continue reading “SEBI releases a Discussion paper on Regulatory Sandbox”
SEBI realized FinTech potential in effectuating investor protection and promoting the security market, SEBI releases a discussion paper on “Regulatory Sandbox” to boost development and adoption of FinTech solutions in the securities market. Regulatory Sandbox is a live testing environment where products, processes, services or business models can be deployed on a limited set of eligible customers for a certain period having exemption or relaxation from SEBI regulations and guidelines. Earlier this month, SEBI had proposed ‘Innovation Sandbox’ which was lubricated at providing information to FinTech companies which could not have been readily available to them, to enable their innovation on historical data in a closed system having regard to anonymity to promote innovation in the securities market before actually testing in a live environment on real customers. However, market players were concerned about the scope of its applicability to SEBI rules, to what extent exemptions may be granted. Thus, a notion of confusion had flown among market players and thus demanded a lot of clarity on the same.