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

Ridhi FinServ completes its sandbox testing of a lending platform in GIFT IFSC. Its results are satisfactory and it wishes to continue operating after the sandbox ends. What must it do?

Ridhi FinServ must obtain the appropriate IFSCA registration or authorisation for its activity before operating beyond the sandbox. Sandbox permission is only temporary for testing, so continued commercial operation requires full regulatory authorisation, or else the entity must exit.

  1. AContinue operating, since the sandbox approval is permanent
  2. BObtain the appropriate registration or authorisation from IFSCA for the activity before operating beyond the sandboxCorrect
  3. COperate only with Indian domestic customers under RBI rules
  4. DWait for SEBI to grant an automatic licence

Explanation

Sandbox permission is temporary and exists only for testing. To continue commercially, the entity must obtain the relevant IFSCA authorisation or registration for the activity, or else wind down. It is not permanent and SEBI does not grant automatic licences.

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