Sebi mulls ‘regulatory sandbox’ for AI, Blockchain

New Delhi: To make best use of latest technologies, the Securities and Exchange Board of India is considering a ‘regulatory sandbox’ approach to allow greater but well-regulated use of new innovations such as blockchain and artificial intelligence in the securities markets.

Regulators in major financial markets have established regulatory ‘sandbox’ or testing environment for furthering financial technology and adoption. Officials said Sebi is of the view that innovation in financial technologies like blockchain for settlement, artificial intelligence including robo-advisory, e-wallets, security systems for intermediaries and market infrastructure institutions, resolution of complaints, outsourcing and development of new technology can be better done through a 'sandbox' mechanism.