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

Zenith Labs, a fintech applicant in the IFSCA Regulatory Sandbox, has completed its testing period and wants to continue operating its service in GIFT IFSC. What is the correct position?

After the sandbox period ends, Zenith Labs can continue only by obtaining the relevant registration, licence or authorisation from IFSCA for its activity. Sandbox relaxations are temporary and limited, and they do not become a permanent approval or convert automatically into another status.

  1. AIt may continue only by obtaining the appropriate registration, licence or authorisation from IFSCA for the activityCorrect
  2. BIt may continue indefinitely under sandbox relaxations without any further approval
  3. CIts sandbox participation automatically converts into a stock exchange membership
  4. DIt must shift its operations outside IFSC to continue

Explanation

Sandbox relaxations are temporary and apply only for the testing period. After testing, the entity must obtain proper authorisation from IFSCA for the regulated activity if it wishes to continue. Indefinite continuation or automatic conversion is not provided for.

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