Jun 30, 2021

SEBI Revises Framework for Regulatory Sandbox

By a circular dated June 5, 2020, SEBI had introduced a framework for regulatory sandbox (‘Framework’) for SEBI regulated entities. Our write-up on the said circular can be accessed here. SEBI, by a Circular dated June 14, 2021, has revised the Framework in order to enhance the reach and achieve the desired aim of the Framework. Amongst other changes, SEBI has introduced two stages of sandbox testing whereby: (a) in stage-I, a limited set of identified users proposed by the applicant will be approved for testing by SEBI, and (b) in stage-II, a larger set of identified users will be approved for testing by SEBI. An applicant is eligible for stage-II after completing at least 90 days in the regulatory sandbox testing. The revised Framework also prescribes a distinct eligibility and evaluation criteria for both stages of testing, respectively.




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