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

Kavya Securities, a Mumbai broker, wants to use the IFSCA Regulatory Sandbox to test a blockchain-based settlement tool. A director argues that the sandbox only suits unregulated start-ups. Which statement is correct?

Both existing regulated entities and new innovators can apply to the IFSCA sandbox, provided the proposal is genuinely innovative and satisfies the eligibility conditions. The sandbox is not limited to unlicensed start-ups, registered entities only, or foreign firms.

  1. AOnly entities with no existing licence can apply to the sandbox
  2. BOnly entities already registered with IFSCA can apply
  3. CBoth existing regulated entities and new innovators may apply if the proposal is genuinely innovative and meets the eligibility conditionsCorrect
  4. DOnly foreign entities with no Indian presence can apply

Explanation

The sandbox is open to start-ups, fintech firms and also regulated financial institutions that propose genuine innovation meeting eligibility criteria. Restricting it to unlicensed or already registered or foreign entities is not the rule.

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