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CS Professional · IFSCA - Regulations, Listing and Compliances · Overview of FinTech and Service Providers in IFSC

Kaveri Analytics wants to enter GIFT IFSC and offer a FinTech solution to regulated financial institutions. It is unsure whether it must first obtain a separate licence for each use case. Under the IFSCA FinTech framework, which description best captures the Sandbox's role for such an entrant?

The Sandbox is a voluntary route for testing innovative products in a controlled environment with regulatory relaxations. It is not a mandatory precondition for every FinTech activity, nor a tax scheme or listing platform, so Kaveri may choose to use it.

  1. AA mandatory step that every FinTech must complete before starting any operations
  2. BA voluntary route for testing innovative offerings in a controlled environment, not a pre-condition to all FinTech activityCorrect
  3. CA tax holiday scheme available only to banks
  4. DA listing platform for FinTech start-up shares

Explanation

The Sandbox is an optional, controlled testing environment for innovations. It is not a compulsory gateway for all FinTech entry, it is not a tax scheme and it is not a listing venue, so the other descriptions are wrong.

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