{"id":120490,"date":"2019-05-29T09:31:10","date_gmt":"2019-05-29T09:31:10","guid":{"rendered":"https:\/\/www.bnreport.com\/sebi-floats-discussion-paper-on-regulatory-sandbox-for-fintechs\/"},"modified":"2019-05-29T09:31:10","modified_gmt":"2019-05-29T09:31:10","slug":"sebi-floats-discussion-paper-on-regulatory-sandbox-for-fintechs","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/sebi-floats-discussion-paper-on-regulatory-sandbox-for-fintechs\/","title":{"rendered":"Sebi floats discussion paper on regulatory sandbox for fintechs"},"content":{"rendered":"<p>Mumbai: The Securities and Exchange Board of India (<a href=\"https:\/\/economictimes.indiatimes.com\/topic\/Sebi\" rel=\"noreferrer noopener\" target=\"_blank\">Sebi<\/a>) on Tuesday floated a discussion paper on \u201cRegulatory Sandbox\u201d \u2013 to boost the development and adoption of fintech solutions.<\/p>\n<p><a href=\"https:\/\/economictimes.indiatimes.com\/topic\/Regulatory-Sandbox\" rel=\"noreferrer noopener\" target=\"_blank\">Regulatory Sandbox<\/a> is a live testing environment where fintech companies can deploy new products, processes, services and business models on a limited set of customers for a specified period of time with certain relaxations in Sebi regulations and guidelines.<\/p>\n<p>Earlier this month, Sebi had proposed \u201cInnovation Sandbox\u201d \u2013 a testing environment where fintech firms can experiment innovations in a closed environment, with historical data.<\/p>\n<p>The markets regulator said the current move was a step ahead in the same direction as <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/innovation-sandbox\" rel=\"noreferrer noopener\" target=\"_blank\">innovation sandbox<\/a>.<\/p>\n<p>Under the current proposal \u2013 the regulatory sandbox\u2014financial institutions will be granted certain facilities and flexibilities to experiment with finech solutions in live environment and on real customers, and these features will be fortified with necessary safeguards for investor protection and risk mitigation.<\/p>\n<p>Sebi said it believes that encouraging adoption and usage of fintech would have a profound impact on the development of securities market, and can act as an instrument to further develop and maintain an efficient, fair and transparent securities market ecosystem.<\/p>\n<p>\u201cInnovation through investor-centric experimentation has the potential to create better financial products, lower the costs of transaction for investors and promote <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/financial-inclusion\" rel=\"noreferrer noopener\" target=\"_blank\">financial inclusion<\/a> especially for Indian investors with limited means,\u201d Sebi said in a report.<\/p>\n<p>\u201cHowever, there have been instances when innovation without proper <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/regulatory-oversight\" rel=\"noreferrer noopener\" target=\"_blank\">regulatory oversight<\/a> has caused damage to investors and economies. Therefore, it is imperative that new technology intensive business models and innovations are deployed with proper regulatory oversight and risk mitigation safeguards,\u201d the markets regulator added.<\/p>\n<p>It said the sandbox is intended to serve as a testing ground for new bu<a href=\"https:\/\/economictimes.indiatimes.com\/markets\/stocks\/news\/sebi-floats-discussion-paper-on-regulatory-sandbox-for-fintechs\/articleshow\/69545354.cms\" rel=\"noreferrer noopener\" target=\"_blank\"><strong>Read More \u2013 Source<\/strong><\/a><br \/>\n[contf]<br \/>\n[contfnew]<br \/>\n        <img decoding=\"async\" src=\"https:\/\/img.etimg.com\/photo\/60278104.cms\" \/><\/p>\n<h5><a href=\"https:\/\/economictimes.indiatimes.com\/\" rel=\"noreferrer noopener\" target=\"_blank\">ET Markets<\/a><\/h5>\n<p>[contfnewc]<br \/>\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mumbai: The Securities and Exchange Board of India (Sebi) on..<\/p>\n","protected":false},"author":1,"featured_media":120491,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-120490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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