TMI BlogRevised Framework for Innovation SandboxX X X X Extracts X X X X X X X X Extracts X X X X ..... 2. To create an ecosystem which promotes innovation in the securities market, SEBI feels that startups including FinTech firms should have access to market related data, and test environments which are 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 operationalize the abovementioned endeavor, SEBI had proposed a concept of Innovation Sandbox . Innovation Sandbox facilitates access to an environment (testing facilities and test data) provided by Enabling Organizations like Stock Exchanges, Depositories and Qualified Registrar and Share Transfer Agents (QRTAs) wherein innovators (hereinafter referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices so as to: 5.1.1. Create new opportunities in the securities market 5.1.2. To make existing services more efficient / investor friendly/ inclusive This would be achieved by giving access to both test data and test environment to Financial Institutions, FinTech firms, startups including entities not regulated by SEBI including individuals. 5.2 Stages of Innovation sandbox: The details of the stages are as below: 5.2.1 Stage I: During Stage I, limited access to the test environment shall be provided and there shall be cap on the utilization of resources in terms of processing power, memory, storage etc. 5.2.2 Stage II: During Stage II, the cap on the utilization of resources shall be remov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to access the test data and test environment and also inform what dataset is required. 5.3.2 Stage- II Eligibility Criteria : The Stage-II criteria are as following 5.3.2.1 Purpose : The purpose of the project should be aligned with the objective of the innovation sandbox. 5.3.2.2 Adequate Progress : The applicant should demonstrate that they have achieved adequate progress and are on track with their testing plan. 5.3.2.3 Post-testing strategy : The applicant should present their post-testing plan. 5.3.2.4 Benefits to investors : The solution should offer identifiable benefits (direct or indirect) to investors and / or to the capital market and financial sector as a whole. 5.3.3 An applicant is eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hensive confidentiality agreement which shall include an End User Agreement clearly specifying that the datasets made available shall not be sold or sublet or shared or misutilized in any manner with any other entities, and shall be used only for the stated purpose. 6.1.2. Infrastructure 6.1.2.1. The datasets to be used for testing solutions in the Innovation Sandbox shall be shared preferably through application program interface (APIs), which would be published and made available to all eligible applicants. 6.1.2.2. Existing test platform shall be made available by the enabling organizations to the eligible applicants to ensure that the innovative solution is working in the enabling organization's environment. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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