In order to encourage innovation and boost participation, markets regulator Sebi on Tuesday revised the objective and eligibility criteria of its innovation sandbox with graded entry norms.
In order to encourage innovation and boost participation, markets regulator Sebi on Tuesday revised the objective and eligibility criteria of its innovation sandbox with graded entry norms.
In addition, a steering committee comprising representatives from the enabling organizations has been formed to drive the innovation sandbox, the Securities and Exchange Board of India (Sebi) said in a circular.
The committee 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 organizations.
Such lead enabling organizations would be responsible for onboarding the applicant post-approval of the application and monitoring the applicant throughout the lifecycle of the sandboxing, the regulator noted.
Innovation sandbox facilitates access to an environment (testing facilities and test data) provided by enabling organizations like stock exchanges, depositories, and qualified registrar and share transfer agents (QRTAs) wherein innovators (sandbox applicants) would be testing their innovations in isolation from the live market.
Sebi said the capital market in India has been an early adopter of technology and the regulator believes that encouraging adoption and usage of financial technology (FinTech) would have a profound impact on the development of the securities market.
FinTech can act as a catalyst to further develop and maintain an efficient, fair, transparent, and inclusive securities market ecosystem.
To create an ecosystem that promotes innovation in the securities market, Sebi is of the view that startups including FinTech firms should have access to market-related data, and test environments that are otherwise not readily available to them.
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