SECP Permits Live Testing of 9 Innovative Business Models Under RSB



The Securities and Exchange Commission of Pakistan (SECP) has permitted live testing of their innovative business model to nine applicants of Regulatory Sandbox. The application has successfully completed its incubation period. The selected entities have been employing blockchain, AI, and other technology-based solutions for gold and real estate fractionalization, algorithmic trading, one-window SME lending, education finance, and crowdfunding. The entities will offer financial services to a limited customer base over the next few months. In September 2023, the SECP permitted ten applicants to enter the incubation phase of the RSB to test their distinct business models. These included including M/s FINCLUDE Systems Pvt Ltd, M/s LOOP Financial Services Ltd, M/s AKRU Pak Pvt. Ltd, M/s CG Global Pvt Ltd, M/s Xstate Technologies Pvt Ltd, M/s Diamond Technologies (SMC Pvt) Ltd, M/s Quantree Pvt Ltd, M/s Reals, M/s Al-Hilal Securities Advisors Pvt Ltd, and M/s ibox 7 Pvt Ltd. Out of the eleven business models, nine have successfully completed the incubation phase and begun testing. Two business models, namely ‘ibanc360’ of ibox 7 Ltd. and ‘Robo-Advisory – Multi-Manager Investment Plans’ of Al-Hilal Securities Advisors Pvt Ltd. could not transition successfully from the incubation phase to the live testing phase. However, Al-Hilal Securities Advisors Pvt. Ltd. Is continuing to test its gold fractionalization model in the incubation phase. The SECP’s Regulatory Sandbox, a platform for fostering technological innovation in financial services, has been in operation for four years. Over 130 fintech companies have applied for testing, with 31 business models approved. The SECP has transitioned from a cohort-based approach to an “always open” one, allowing applicants to test their innovative business models anytime throughout the year. The testing of technology-driven solutions through the Regulatory Sandbox can catalyze financial and technological innovation, thereby expanding the spectrum of financial products. This aligns with the SECP’s vision of promoting financial inclusion and fostering the growth of FinTech and related sectors within its regulatory purview.

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