The Securities and Exchange Board of India in its notification dated 17th April 2020, has made amendments to SEBI regulations related to Regulatory Sandbox. Regulatory Sandbox is a live testing environment where new products, processes and services are tested in a controlled environment for a limited period of time and on selected data sets.
Entities exploring to test their products, processes, services etc, will have to be registered with SEBI under section 12 of SEBI Act 1992 after which only they will be allowed for testing within regulatory sandbox.
SEBI through this amendment has inserted a new chapter with respect to “Power to relax strict enforcement of the regulations”, stating that the Board may exempt any person or class of persons from the operation of all or any of the provisions of these regulations for a period as may be specified but not exceeding 12 months, for furthering innovation in technological aspects through testing new products, processes, services, business models, etc. in live environment of regulatory sandbox in the securities markets. The chapter is inserted to all related regulations.
Further the above exemption granted by the Board shall be subject to the applicant satisfying such conditions as may be specified by the Board including conditions to be complied with on a continuous basis.
Click here to read the Notification.
