CS Professional · IFSCA - Regulations, Listing and Compliances · Overview of FinTech and Service Providers in IFSC
Aarav Analytics is admitted to the IFSCA Regulatory Sandbox to test a robo-advisory tool. Midway through the testing period, it finds that its tool needs a longer test window than originally approved. What is the correct approach?
Aarav Analytics must apply to IFSCA for an extension, and IFSCA decides whether to grant it. The sandbox period is set by the regulator, so a participant cannot extend it unilaterally, nor can an exchange or automatic re-entry do so.
- AContinue testing silently, since sandbox entities may extend the period on their own
- BApply to IFSCA for an extension, which IFSCA may grant at its discretion for reasons recordedCorrect
- CExit and re-enter the sandbox automatically for a new period without any approval
- DAsk the stock exchange in GIFT IFSC to extend the period
Explanation
The sandbox period is fixed by IFSCA and any extension depends on IFSCA's approval on an application. An entity cannot extend by itself, and the exchange has no power over sandbox timelines. Automatic re-entry is also not provided.
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