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<h1>SEBI Unveils Regulatory Sandbox for FinTech Innovation in Capital Markets: Test Solutions with Real Customers Safely.</h1> The Securities and Exchange Board of India (SEBI) has issued a circular introducing a framework for a Regulatory Sandbox to foster innovation in the capital market. This initiative allows SEBI-regulated entities to test FinTech solutions in a live environment with real customers for a limited time, ensuring investor protection and risk mitigation. The framework outlines eligibility criteria, application processes, and evaluation metrics for participation. It also details regulatory exemptions, obligations towards users, and conditions for extending or exiting the sandbox. The framework aims to balance innovation with market integrity and investor protection, providing a controlled environment for testing new technologies.