The Securities and Exchange Board of India on 14th June 2021 has revised the eligibility criteria of the Regulatory Sandbox. All entities registered with SEBI under section 12 of the SEBI Act 1992, shall be eligible for testing in the regulatory sandbox. The entity may apply either on its own or in partnership with any other entity.
There are two stages for sandbox testing and the eligibility criteria for stage 1 should be an entity registered with SEBI under section 12 of the SEBI Act 1992 and should have a genuine need for live testing the solution on real users. The applicant should provide justification that testing in test environment with test data is not enough.
The applicant should have necessary resources to support testing in the sandbox and must demonstrate well developed testing plans with clear objectives, parameters and success criteria.
An applicant is eligible for Stage-II after completing minimum 90 days in the Regulatory Sandbox testing.
The applicant should demonstrate that they have achieved adequate progress and are on track with their testing plan and shall submit the details of the risks observed during stage-I testing along with the steps taken to mitigate those risks.
