With an aim to facilitate the use of latest fintech innovations in capital markets, Sebi on Monday decided to allow live testing of new products, services and business models by market players on select customers.

Initially, all Sebi registered entities will be eligible to participate in such a “regulatory sandbox”, a live testing environment where new products processes, services and business models can be deployed on a limited set of eligible customers for a specified period of time with certain relaxations in rules and guidelines. Sebi’s board also decided to allow a cross-domain approach for this regulatory sandbox, wherein a regulated entity will be permitted to test solutions even for those activities for which it is not registered.

Check on advisers

Sebi also decided to tighten its eligibility norms for investment advisers and decided to introduce an upper limit for their fees. It barred the use of titles such as independent “financial advisers” or “wealth advisers” by those dealing in distribution of securities, unless they are registered as investment advisers also.