Ministry of Finance has issued the Innovation Sandbox Operating Guidelines. “Innovation Sandbox” is a testing environment where Financial Institutions/Fintech Firms/Startups/Individual can test their solutions isolated from the live market.
The objective of innovation sandbox is to Promote innovation both in terms of new product and services as well as new ways of delivering existing product and services so as to:
- Create new opportunities in the securities market.
- To make existing services more efficient / investor friendly/ inclusive.
Purpose of the Guidelines
The Innovation sandbox guidelines (the “guidelines”) aim to provide guidance to the applicant on the application process and the evaluation / eligibility criteria.
Target Audience
The guidelines will be of particular interest to firms/ individuals that are looking to apply technology in an innovative way to provide financial services that are or likely to be regulated by SEBI or to the firms/ individuals that uses the data which is available with MIIs and QRTAs and build product and services which have potential to be used for the entre financial sector and are in alignment with the objective of the Innovation Sandbox. The target audience includes but is not limited to FIs, FinTech firms, startups, professional services firms partnering with or providing support to such businesses and entities not regulated by SEBI including individuals.
