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

Lotus FinServe, a Sandbox participant in GIFT IFSC, completed its testing period and wishes to continue serving customers. It asks the Company Secretary what should happen next. Which advice is correct in principle?

Lotus should apply to IFSCA for the appropriate regular authorisation, registration or licence for the activity. Sandbox relaxations are temporary and limited in scope and time, so continuing indefinitely under them is not allowed, while listing is not a requirement.

  1. AIt may continue indefinitely under the Sandbox relaxations without any further approval
  2. BIt must stop operations and cannot ever apply again
  3. CIt should seek the appropriate authorisation, registration or licence from IFSCA for the activity if it wants to continue on a regular basisCorrect
  4. DIt must convert itself into a listed company on the stock exchange

Explanation

Sandbox relaxations are temporary and limited. After testing, the entity must obtain the relevant regular authorisation from IFSCA to continue. Indefinite continuation defeats the limited purpose, there is no bar on later applying, and listing is not required.

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