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<h1>SEBI Updates Regulatory Sandbox Framework for FinTech Innovation in Securities Market; Details Testing, Eligibility, and Exemptions.</h1> The Securities and Exchange Board of India (SEBI) has revised its Regulatory Sandbox framework to encourage innovation in the securities market. The updated framework, aimed at entities registered with SEBI, allows them to test FinTech solutions in a live environment with real users for a limited period. The framework outlines eligibility criteria, a two-stage testing process, and the application and approval procedures. It also details the requirements for regulatory exemptions, risk management, user consent, and reporting obligations. The sandbox testing is capped at 12 months, with provisions for extension, and includes guidelines for exiting or withdrawing from the sandbox.