NASSCOM, Technology industry association has proposed special provisions to be made for the virtual testing of fintech products be created in the capital market regulator’s proposed regulatory sandbox, because some start-ups may not have the chance to conduct an offline test for their products.
A discussion paper on a regulatory sandbox and invited suggestions for the framework was introduced by the Securities and Exchange Board of India on May 28. According to the SEBI, to use fintech as an instrument is the major objective of this move. This instrument can be utilised to improve the transparency and fairness of the securities market ecosystem.
As mandated by SEBI,the eligibility criteria, to enter the sandbox, would be “limited offline testing” by the applicants, a condition that NASSCOM wants it to relax. Situations are there when there is no existence of a test there is sort of a barrier in terms of entry into the sandbox, said the lobby group in its submission on the proposed framework. The industry body reportedly said that most of the companies working around fintech, specifically the start-ups do not generally have scope for offline testing of solutions before applying for or entering the sandbox.