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<h1>Regulation 42 permits SEBI to relax delisting rules for investor interest or innovation for up to 12 months.</h1> Regulation 42 of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021, allows the Board to relax strict enforcement of regulations for investor interest or market development. This can occur if the requirement is procedural, irrelevant for certain industries, or non-compliance was uncontrollable. Applicants must submit a self-attested application with a non-refundable fee of one lakh rupees. The Board may exempt entities from regulations for up to twelve months to support innovation in a regulatory sandbox, subject to conditions. The sandbox allows testing of new market products and services with specified conditions.