SEBI vide circular No. SEBI/HO/MRD-1/CIR/P/2020/95 dated 05th June 2020 it has been decided to introduce a framework for “Regulatory Sandbox”.
Through previous circulars dated may 20, 2019 stipulated a framework for an industry-wide Innovation Sandbox, whereby FinTech startups and entities not regulated by SEBI were permitted to use the Innovation Sandbox for offline testing of their proposed solution.
Further, this circular SEBI now has decided to introduce a framework for “Regulatory Sandbox”. Under this sandbox framework, entities regulated by SEBI shall be granted certain facilities and flexibilities to experiment with FinTech solutions in a live environment and on a limited set of real customers for a limited time frame. These features shall be fortified with necessary safeguards for investor protection and risk mitigation. Guidelines pertaining to the functioning of the regulatory Sandbox are provided as the annexures to the Circular can be accessed through the following link.
https://www.sebi.gov.in/legal/circulars/jun-2020/framework-for-regulatory-sandbox_46778.html