Two years on, Sebi's sandbox initiative yet to find its feet

Most applications have either been withdrawn or stand rejected

The regulatory sandbox framework approved by the Securities and Exchange Board of India (Sebi) board in February 2020 has remained a slow starter.

Restrictive regulatory framework, conservative approach towards innovative ideas, and lack of inter-regulatory coordination are key reasons why the initiative — aimed at boosting innovation and futuristic ideas — has failed to take off, say industry players. Regulatory officials said they are working on concern areas to give the initiative a fresh push.

Since 2020 when the framework was introduced, the markets regulator has received 10 applications for its approval. Of this, three have been rejected, five withdrawn,