{"id":3198,"date":"2021-03-11T06:28:38","date_gmt":"2021-03-11T06:28:38","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3198"},"modified":"2021-03-11T06:28:41","modified_gmt":"2021-03-11T06:28:41","slug":"revised-framework-for-innovation-sandbox-prescribed-by-sebi","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/","title":{"rendered":"Revised Framework for Innovation Sandbox Prescribed by SEBI"},"content":{"rendered":"\n<p class=\"has-drop-cap\">To promote the development and growth of\nthe securities market and the use of financial technology (FinTech) companies,\nSEBI has prescribed a revised framework for Innovation Sandbox. The same has\nbeen notified by way of SEBI Circular No SEBI\/HO\/ITD\/ITD\/CIR\/P\/2021\/16, issued\non 02.02.2021.<\/p>\n\n\n\n<p>In this learning blog, we will talk\nabout Innovation Sandbox and why SEBI has prescribed a revised framework for Innovation\nSandbox?<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aa368d8e5f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aa368d8e5f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Concept_of_Innovation_Sandbox\" title=\"Concept of Innovation Sandbox\">Concept of Innovation Sandbox<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Need_for_Revising_the_Framework_for_Innovation_Sandbox\" title=\"Need for Revising the Framework for Innovation Sandbox\">Need for Revising the Framework for Innovation Sandbox<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Concept_of_Steering_Committee_under_Revised_Framework\" title=\"Concept of Steering Committee under Revised Framework\">Concept of Steering Committee under Revised Framework<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Objectives_of_the_Revised_Framework_for_Innovation_Sandbox\" title=\"Objectives of the Revised Framework for Innovation Sandbox\">Objectives of the Revised Framework for Innovation Sandbox<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Different_Stages_of_Innovation_Sandbox\" title=\"Different Stages of Innovation Sandbox\">Different Stages of Innovation Sandbox<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Stage_I\" title=\"Stage I\">Stage I<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Stage_II\" title=\"Stage II\">Stage II<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Eligibility_Criteria_for_Different_Stages_of_Innovation_Sandbox\" title=\"Eligibility Criteria for Different Stages of Innovation\nSandbox\">Eligibility Criteria for Different Stages of Innovation\nSandbox<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Eligibility_Criteria_for_Stage_I\" title=\"Eligibility Criteria for Stage I\">Eligibility Criteria for Stage I<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Eligibility_Criteria_for_Stage_II\" title=\"Eligibility Criteria for Stage II\">Eligibility Criteria for Stage II<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Purpose\" title=\"Purpose\">Purpose<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Adequate_Process\" title=\"Adequate Process\">Adequate Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Post_Testing_Strategy\" title=\"Post Testing Strategy\">Post Testing Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Benefits_to_Investors\" title=\"Benefits to Investors\">Benefits to Investors<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Features_and_Structure_of_the_Revised_Framework_for_Innovation_Sandbox\" title=\"Features and Structure of the Revised Framework for Innovation\nSandbox\">Features and Structure of the Revised Framework for Innovation\nSandbox<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Design_Components\" title=\"Design Components\">Design Components<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Data_Sets\" title=\"Data Sets\">Data Sets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Infrastructure\" title=\"Infrastructure\">Infrastructure<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Intellectual_Property_Rights\" title=\"Intellectual Property Rights\">Intellectual Property Rights<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Administrative_Components\" title=\"Administrative Components\">Administrative Components<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Application_Assessment\" title=\"Application Assessment\">Application Assessment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Interface_for_Innovation_Sandbox\" title=\"Interface for Innovation Sandbox\">Interface for Innovation Sandbox<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/swaritadvisors.com\/blog\/revised-framework-for-innovation-sandbox-prescribed-by-sebi\/#Official_SEBI_Circular_on_Revised_Framework_for_Innovation_Sandbox\" title=\"Official SEBI Circular on Revised Framework for Innovation\nSandbox\">Official SEBI Circular on Revised Framework for Innovation\nSandbox<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Innovation_Sandbox\"><\/span>Concept of Innovation Sandbox<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Innovation Sandbox means a mechanism that facilitates access to a situation (testing facilities and test data) offered by enabling organisations, such as Stock Exchanges, QRTAs (Qualified Registrar and Share Transfer Agents), and Depositories wherein innovators or sandbox applicants would be testing their innovations in remoteness and isolation from the live market.<\/p>\n\n\n\n<p><strong>Also, Read: <\/strong><mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/sebi-guidelines-for-issue-of-debentures-in-india\/\">SEBI Guidelines for Issue of Debentures in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_for_Revising_the_Framework_for_Innovation_Sandbox\"><\/span>Need for Revising the Framework for Innovation Sandbox<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The reasons for revising the framework\nfor Innovation Sandbox are as follows:<\/p>\n\n\n\n<ul><li>&nbsp;To create an ecosystem that promotes and\nboosts innovation in the securities and capital market;<\/li><li><a href=\"https:\/\/www.sebi.gov.in\/\">SEBI<\/a> (Securities and Exchange Board of\nIndia) felt that start-ups comprising of FinTech firms must have access to the market\nconcerning data, and test environments, which are otherwise not readily accessible\nto them;<\/li><li>Also,\nto enable them to test their innovations effectively before the introduction of\nsuch innovations in a live environment;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Steering_Committee_under_Revised_Framework\"><\/span>Concept of Steering Committee under Revised Framework<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To initiate the Innovation Sandbox, a steering committee including representatives from the enabling organisations has been formulated. Further, the key responsibilities of the said steering committee can be summarised as:<\/p>\n\n\n\n<ul><li>The formed steering committee will supervise the operations and working of the Innovation sandbox;<\/li><li>A representative from SEBI will be included as a member of this committee as well;<\/li><li>The steering committee will process the applications furnished by sandbox applicants and can either approve or reject the same or can assign a lead enabling organizations etc.;<\/li><li>The secretariat for a specific application will be the assigned lead enabling organization;<\/li><li>The lead enabling organizations will be accountable for onboarding the applicant\u2019s post approval of the application &amp; monitoring the said applicant all over the lifecycle of the sandboxing;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_of_the_Revised_Framework_for_Innovation_Sandbox\"><\/span>Objectives of the Revised Framework for Innovation Sandbox<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On the evaluation\nof the existing framework of Innovation Sandbox, and to encourage and boost\ninnovation and to make the same even more suitable for participation in the\nInnovation Sandbox, the eligibility criteria and objectives of the Innovation\nSandbox has been amended with graded entry norms.<\/p>\n\n\n\n<p><strong>Further, the new objectives of the revised\nframework for Innovation Sandbox are as follows:<\/strong><\/p>\n\n\n\n<ul><li>Create New Prospects and Opportunities in the\nSecurities Market;<\/li><li>To make the existing services more efficient,\ninvestor friendly, and inclusive;<\/li><\/ul>\n\n\n\n<p>However, it\nshall be noted that the same would be achieved only by giving access to both\ntest environment and test data to Fintech firms, Financial Institutions, Start-ups,\ninclusive of entities that are not regulated by the SEBI, including individuals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Stages_of_Innovation_Sandbox\"><\/span>Different Stages of Innovation Sandbox<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The different\nstages of the Innovation Sandbox are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stage_I\"><\/span>Stage I<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>During Stage \u2013 I, only limited access will be provided to the test environment, and there will be a limit cap on the utilization of resources in terms of memory, processing power, storage etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stage_II\"><\/span>Stage II<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>During Stage \u2013 II, the limit cap on the utilization of resources will be removed. However, the same will be subject to the availability of resources and power in that point of time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Different_Stages_of_Innovation_Sandbox\"><\/span>Eligibility Criteria for Different Stages of Innovation\nSandbox<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\neligibility criteria for different stages of Innovation Sandbox are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Stage_I\"><\/span>Eligibility Criteria for Stage I<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The\neligibility criteria for stage I can be summarised as:<\/p>\n\n\n\n<ul><li>The Applicant needs to be an Indian Citizen or the entities incorporated in India. Further, the KYC (Know Your Customers) norms should be in line with the CKYCR (Central Know Your Customers Registry) and KRA (KYC Registration Agency). Further, the KYC requirements comprise of the following:<\/li><\/ul>\n\n\n\n<ol><li>Name of the Fintech Firms\/ Financial Institutions\/ Start-ups\/Individuals; <\/li><li>Names of the Partners or Directors, if in case applicable;<\/li><li>Address of the Registered Head Office\/ Correspondence Address;<\/li><li>Date and Year of the Registration or Establishment, if in case applicable; <\/li><li>Contact Number and Registered Email Id; <\/li><li>Official Website, if in case applicable;<\/li><li>Government issued Identification Details, such as Passport, Driving License, Voter Id, PAN (Permanent Account Number), Aadhar Card, etc.; <\/li><li>Letter of Undertaking (LOU) that the applicant is not debarred or blacklisted by any Government department, due to breach of some general or specific instructions, fraudulent or corrupt or any other illegal or unethical business practices;<\/li><li>Any other information or detail as may be needed to process the application;<\/li><\/ol>\n\n\n\n<ul><li>The applicant must have a genuine necessity for testing the solution by using the resources available in the Innovation Sandbox. Further, the applicant must provide justification of necessity to access the test environment and test data. Also, it needs to inform what type of dataset is required;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Stage_II\"><\/span>Eligibility Criteria for Stage II<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The\neligibility criteria for stage II can be summarised as:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purpose\"><\/span>Purpose<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The main objective of the project must\nbe aligned with the purpose of the innovation sandbox.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Adequate_Process\"><\/span>Adequate Process<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The applicant must demonstrate that they\nhave achieved adequate progress and are on-track with their testing plan.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post_Testing_Strategy\"><\/span>Post Testing Strategy<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The applicant\nneeds to present their post testing plan.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_to_Investors\"><\/span>Benefits to Investors<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The solution\nmust offer identifiable benefits, whether direct or indirect, to the investors\nand to the capital market and the financial sector as a whole.<\/p>\n\n\n\n<p>However, it shall be noted that an applicant is qualified for Stage-II only after completing a minimum period of 60 days in Stage-I of the Innovation Sandbox Testing. <\/p>\n\n\n\n<p>Further, the applicants need to make a\npresentation to the steering committee for the evaluation and entry to Stage II.\nThe same can either be physically or by any virtual mode.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_and_Structure_of_the_Revised_Framework_for_Innovation_Sandbox\"><\/span>Features and Structure of the Revised Framework for Innovation\nSandbox<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The components and structure of the\nRevised Framework for Innovation Sandbox can be broadly categorised into the\ncategories as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Design_Components\"><\/span>Design Components<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The two types of Design Components are\nas follows:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Data_Sets\"><\/span>Data Sets<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>One of the most significant components or features of an Innovation Sandbox is the direct access to the securities market and the related data, which will allow applicants to test and improve the FinTech based solutions;<\/li><li>The datasets which will be made available to the applicants need to be clearly defined and also must be in knowledge of the market participants. Further, the Indicative Datasets which will become part of the Innovation Sandbox can be summarised as:<\/li><\/ul>\n\n\n\n<ol><li><strong>Depositories Data:<\/strong> KYC Data, Holding Data;<\/li><li><strong>Stock Exchange Data:<\/strong> Transactions Data, such as Trade Log, Order Log;<\/li><li><strong>RTA Data:<\/strong> Mutual Funds Transaction Data;<\/li><\/ol>\n\n\n\n<ul><li>The\ndatasets used will be historical and anonymised data and will contain data\nconcerning episodic market events as well. However, it shall be noted that Live\nData will not be made available to applicants;<\/li><li>Access\nto datasets will be facilitated in a phased manner, starting with the limited\namount of data and on the basis of validations, more exhaustive data will be\nprovided to applicants;<\/li><li>The\nuse of datasets will be governed and regulated by a comprehensive\nconfidentiality agreement, which will include an \u201cEnd User Agreement\u201d clearly prescribing that the\ndatasets made available will not be sublet or sold or misutilised or shared in\nany manner with any other entities. Also, the same will be used only for the mentioned\npurpose;<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Infrastructure\"><\/span>Infrastructure<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>It shall be noted that all the datasets which will be used for testing solutions in the revised Innovation Sandbox will be shared, if possible, by way of the application program interface (APIs), and the same would be published and made accessible to all eligible applicants;<\/li><li>The existing test platform will be made accessible by the enabling organisations to the qualified applicants to confirm that the said innovative solution is working and operating in the enabling organization&#8217;s environment;<\/li><li>Enabling organizations will also need to provide Innovation Sandbox test kit (inclusive of Test data, API, Test Environment, Configurable Access Rights etc.) to the qualified applicants;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Intellectual_Property_Rights\"><\/span>Intellectual Property Rights<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is foreseen that there will be\nnumerous applications with parallel ideas in the innovation sandbox. Therefore,\nno claim with regard to the IPR (Intellectual Property Rights) will be\napplicable in the Innovation Sandbox.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Administrative_Components\"><\/span>Administrative Components<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The two different types of\nAdministrative Components are as follows:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Application_Assessment\"><\/span>Application Assessment<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Applications received for participation in the Innovation Sandbox would be assessed and examined by the steering committee. Also, it would follow the prescribed graded eligibility criteria.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interface_for_Innovation_Sandbox\"><\/span>Interface for Innovation Sandbox<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Enabling organizations will endeavour to\nmake the whole innovation sandbox participation lifecycle, such as applying,\ntracking, on boarding, monitoring, reporting, etc. The completely digital\nlifecycle will ensure both transparency and efficiency. <\/p>\n\n\n\n<p>Also, it shall be noted that the Innovation\nSandbox web portal will be accessed at <a href=\"https:\/\/innovation-sandbox.in\/\">https:\/\/innovation-sandbox.in\/<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the SEBI has issued this circular by exercising of powers provided under the provisions of section 11 (1) of the SEBI Act 1992 and Section 19 of the Depositories Act 1996. The same was done to defend the interests of investors in the securities and capital market and to promote the development and regulation of such a market.<\/p>\n\n\n\n<p><strong>Also, Read: <\/strong><mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi\/\">Extension of Video Conferencing Facility to REITs and InvITs by SEBI<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_SEBI_Circular_on_Revised_Framework_for_Innovation_Sandbox\"><\/span>Official SEBI Circular on Revised Framework for Innovation\nSandbox<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Official-SEBI-Circular-on-Revised-Framework-for-Innovation-Sandbox.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Official-SEBI-Circular-on-Revised-Framework-for-Innovation-Sandbox<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To promote the development and growth of the securities market and the use of financial technology (FinTech) companies, SEBI has prescribed a revised framework for Innovation Sandbox. The same has been notified by way of SEBI Circular No SEBI\/HO\/ITD\/ITD\/CIR\/P\/2021\/16, issued on 02.02.2021. In this learning blog, we will talk about Innovation Sandbox and why SEBI [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,64],"tags":[481],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3198"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3198"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3198\/revisions"}],"predecessor-version":[{"id":3203,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3198\/revisions\/3203"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3200"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}