The board of Securities and Exchange Board of India (Sebi) is most likely to decide the norms for so-called regulatory sandboxes, proxy advisors and Infrastructure Investment Trusts (InvITs) during its meeting scheduled to be held on 17 February meeting. This meeting would be the last to be headed by the Chairman Ajay Tyagi, as quoted by livemint.com.
Tyagi, whose three-year regime at Sebi completes in March, is eligible for renewal for up to two years. Reportedly, several of his unfinished plans are on the agenda of the Sebi board, but due to divided views and lack of clearances from the centre, the board will be finalising only the above three which are exclusively under its regulatory realm, reported the online news website.
A regulatory sandbox, which is under Sebi’s contemplation, is a framework that allows live-testing of new financial products or services in a controlled environment. “The exchanges and market infrastructure institutes have already implemented innovative sandboxes on their end. So, this time, we are taking to the board the regulatory sandbox which will not just allow companies to test their fintech solutions in isolation from live market, but also enable Sebi to form policies and regulations encouraging them,” said a regulatory official, as quoted by the ivemint.com.
Sebi on 29 May produced a discussion paper on regulatory sandbox, suggesting allowing entities to live-test new products, processes, services and business models on a limited set of customers or investors for a particular period.
