Sebi 'sandbox' policy to support tech developments like crypto assets

The Securities and Exchange Board of India Thursday said it was planning a sandbox policy to support technology developments in financial markets. The Sandbox policy will allow companies to test products in a closed environment, particular geography or among a set of users, before they are allowed roll out commercially meeting all regulations.

The capital market regulator was also examining whether any change in law was required in terms of its dispensation, he said. "We will come out with a policy on sandbox soon," SEBI chairman Ajay Tyagi said responding to a question about the regulator's view on crypto assets. Indian regulations do not accept cryptocurrency as a valid currency.

The regulator has also set up a committee to look into the concept of a regulatory sandbox in the country. Tyagi said this will enable the tech companies to work on innovations without regulatory changes. He said there had been huge technology interventions in capital markets in the past and it would continue.