SEBI circular dated 5th June, 2020 laying down a framework for regulatory sandbox in India. Regulatory sandbox is basically a framework set up by the regulators allowing FinTech start ups and innovators to experiment with FinTech solutions in a live environment on a limited set of real customers within a limited time frame. Earlier they had allowed entities not regulated by SEBI to carry out offline testing of their proposed solutions. Now the SEBI is allowing regulated entities to carry out the live testing of their solutions in the Innovations Sandbox. For that purpose detailed framework has been laid down by SEBI guiding the eligibility criteria, applications process, evaluation criteria, regulatory exemptions, submission of interim reports, extending or exiting the sandbox, obligations, rights and responsibilities of the applicants and the users.
Details of the framework can be found in this link
This is quite interesting as it gives leeway to the start ups to carry out live testing of their solutions in a controlled environment. It should be quite exciting for the start ups.