Current context: Securities and Exchange Board of India (SEBI) has decided to permit the use of regulatory sandbox at SEBI’s board meeting held in Mumbai on 17th February 2020.
b. Only 2
c. Both 1 and 2
d. None of them
- The regulatory sandbox is a system that will allow live testing of new products, services and business models by market players on select customers.
- The 'regulatory sandbox' will serve as a testing ground for new business models and technologies that benefit investors, Indian markets and the economy at large.
- Under the regulatory framework, the eligible entities will be granted the facility to experiment with fintech solutions in a live environment and on real customers.
- The entities will be ensured that there are necessary safeguards for investor protection and risk mitigation.
- At the meeting, it was decided to allow a cross domain approach for the regulatory sandbox, wherein a regulated entity will be permitted to test solutions even for those activities for which it is not registered.
- The SEBI was established in 1988 and given Statutory Powers on 30th January 1992 through the SEBI Act, 1992.
- Headquarters: Mumbai
- Chairperson: Ajay Tyagi
Question:
Q.1 Choose the correct statement about 'regulatory sandbox'?- Recently, the Securities and Exchange Board of India (SEBI) has decided to permit the use of regulatory sandbox for registered entities
- SEBI has allowed a cross-domain approach for the regulatory sandbox, wherein a regulated entity will be permitted to test solutions even for those activities for which it is not registered.
b. Only 2
c. Both 1 and 2
d. None of them
