Skip to content

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

Vedant Tech, authorised by IFSCA as a FinTech entity, completes its sandbox testing on a robo-advisory tool. Its testing period ends but it has not obtained any regular authorisation for the activity. Which statement is most accurate about its position?

Vedant Tech must cease the tested activity unless it moves to a regular IFSCA authorisation or obtains a permitted extension. Sandbox status is time-bound and does not grant permanent or deemed registration, nor an open-ended allowance for existing customers.

  1. AIt must stop the sandbox activity unless it exits to a regular authorisation or gets a permitted extensionCorrect
  2. BIt may continue indefinitely since sandbox status is permanent
  3. CIt is automatically deemed registered as an investment adviser
  4. DIt may continue but only for existing customers at no time limit

Explanation

Sandbox participation is time-bound. At the end, the entity must either obtain the regular authorisation, receive a permitted extension, or wind down the tested activity. Sandbox status gives no permanent or deemed licence, and there is no unlimited carve-out for existing customers.

Did you get it right without looking?

One question tells you little. A timed set on Overview of FinTech and Service Providers in IFSC shows your real accuracy, how long you take and where you lose marks.

Practise Overview of FinTech and Service Providers in IFSCFree diagnostic mock

More Overview of FinTech and Service Providers in IFSC questions