Amidst the fast-paced growth of the fintech industry in India, financial regulators in the country have been swift to recognise each such development and keep pace with the market. One particularly interesting development is the global adoption of regulatory sandboxes.
From 2016, a range of committees constituted by different financial regulators began to advocate adoption of regulatory sandboxes, drawing from success stories in other jurisdictions. But 2019 marks a significant moment, as three of India’s prominent financial regulators have rolled-out either draft or final frameworks on regulatory sandboxes for fintech.
The frameworks seek to spur fintech innovation in India and have been welcomed by all stakeholders alike. The framework released by the Securities and Exchange Board of India (SEBI) adopts a particularly holistic approach towards regulation of many different aspects of a sandbox. In this post, we seek to critique the ‘Framework for Innovation Sandbox’, released by SEBI on May 20, 2019 (Sandbox Framework).