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TMI BlogFramework for Innovation SandboxX X X X Extracts X X X X X X X X Extracts X X X X ..... nTech firms should have access to market related data, particularly, trading and holding data, which is otherwise not readily available to them, to enable them to test their innovations effectively before the introduction of such innovations in a live environment. 3. With a view to operationalizing the abovementioned endeavor, SEBI is proposing an "Innovation Sandbox", which would be a testing environment where FinTech firms and entities not regulated by SEBI including individuals (hereinafterwards referred to as participants/applicants) may use the environment for offline testing of their proposed solutions in isolation from the live market, subject to fulfillment of the eligibility criteria, based on market related data made available by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be sold or sublet or shared in any manner with any other entities. B. Infrastructure a) The datasets to be used for testing solutions in the Innovation Sandbox shall be shared through application program interface (APIs), which will be widely published and available to all eligible participants. b) Virtual machines may be made available with configurations similar to the live environment for testing an innovative product, service or solution on the datasets. II. Legal components a) Flexibility The Innovation Sandbox shall be flexible to adapt and incorporate the changes, once the Innovation Sandbox evolves and matures. b) Not-for-profit The Innovation Sandbox can be set up as a separate not-for-profit entity which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A governance body shall be formed comprising of representatives from the Stock Exchanges, Depositories and Qualified Registrar and Share Transfer Agents. This body shall supervise the operations of the Innovation Sandbox in the interests of its contributors, users and securities market in general. The governance body shall be responsible for ensuring that the sandbox fulfils its stated objectives. The governance of the Innovation Sandbox should be neutral and should not favor any particular participant or category of participants. c) Operational team An operational team shall be constituted to carry out the day-to-day activities of the Innovation Sandbox including processing applications, communicating with applicants, assisting the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout testing in the Innovation Sandbox. c) Testing readiness of the solution The applicant should have the necessary resources to support testing in the sandbox. The applicant must show testing plans with clear objectives, parameters and success criteria. d) Post-testing strategy The applicant should be able to postulate their post-testing plan. e) Direct benefits to consumers The solution should offer identifiable benefits (direct or indirect) to consumers and to the capital market and the Indian economy at large. f) Secure The solution shall be validated for cyber security parameters. The applicant is required to submit a cyber-security compliance certificate as per SEBI's Cyber Security guidelines. Implementation 6. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Steering Committee overseeing the testing of the applicant's solution within the sandbox shall maintain an Objective and Key Result Areas (OKRA) document for effective oversight on the entire process. 11. The entire sandbox participation lifecycle (applying, tracking, on-boarding, monitoring, reporting, etc.) should move towards a complete digital environment within a time-bound manner, not exceeding 24 months, towards ensuring transparency and efficiency. 12. The Steering Committee, to begin with, shall evolve decisions based on consensus and have a Chairperson from among the group on a rotation basis. 13. Based on the functioning of the Steering Committee, SEBI would prescribe other norms for governance, as and when required. 14. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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