Innovation is the application of new ideas and insights to create value. Given the many radical new opportunities and threats arising from digital technology, regulators are under pressure to help lead business innovation. There is not one standard template for setting up innovation hub. SEBI wants to provide a range of tools to firms to help facilitate testing a proposition and applies a tailored authorisation and registration process for firms accepted. SEBI is encouraging FinTech experimentation so that promising innovations can be tested in the market and have a chance for wider adoption.

SEBI, vide Circular no SEBI/MRD/CSC/CIR/P/2019/64 dated May 20, 2019 envisaged to create an ecosystem which promotes innovation in the securities market by providing access to market related data, particularly, trading and holding data, to the FinTech firms to enable them to test their innovations effectively before the introduction of such innovations in a live environment.

SEBI believes that FinTech can act as a catalyst to further develop and maintain an efficient, fair and transparent securities market ecosystem. With a view to operationalize the mentioned endeavour, SEBI is proposing an Innovation Sandbox, which would be a testing environment where FinTech firms and entities not regulated by SEBI including individuals may use the environment for offline testing of their proposed solutions in isolation from the live market, subject to fulfilment of the eligibility criteria, based on market related data made available by Stock Exchanges, Depositories and Qualified Registrar and Share Transfer Agents (QRTAs)

Please download Operating Guidelines: SEBI Marketplace for Innovation.

Digital onboarding of Fintech and processing their innovation ideas would be released very soon. Till then, please send details about your company and your innovative idea on the email id - INFO@innovation-sandbox.in.