Securities and Exchange Board of India

Press Releases No. 4/2021

Framework for Innovation Sandbox

Capital market participants in India have been early adopters of technology. SEBI believes that encouraging adoption and usage of financial technology (‘FinTech’) would have a profound impact on the development of the securities market. FinTech can act as a catalyst to further develop and maintain an efficient, fair and transparent securities market ecosystem.

To create an ecosystem which promotes innovation in the securities market, SEBI is of the opinion that FinTech firms should have access to market related data which is otherwise not readily available to them, as well as to a test environment to enable them to test their innovations effectively before the introduction of such innovations in a live environment.

Thus, SEBI had issued a framework for Innovation Sandbox vide circular no.: SEBI/MRD/CSC/CIR/P/2019/64 dated May 20, 2019 with the intent to promote innovation in the securities market.

Based on learnings since then and to make it even more convenient for participation in the Innovation Sandbox, revised graded entry norms have been designed with the objective of promoting innovation both in terms of new products and services as well as new ways of delivering existing products and services so as to create new opportunities in the securities market and to make existing services more efficient / investor friendly/inclusive.

This would be achieved by giving access to both test data and test environment to Financial Institutions, FinTech firms, startups and entities not regulated by SEBI including individuals.

Details may be seen vide SEBI Circular No. SEBI/HO/ITD/ITD/CIR/P/2021/16 dated February 02, 2021.

February 03, 2021

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