Kolkata, Dec 20 (IANS): Securities and Exchange Board of India (SEBI) is planning to come up with a sandbox policy to support technology development for financial markets, an official said here on Thursday.

"We will come out with a sandbox policy. We are examining whether any changes in laws are required in terms of its dispensation," SEBI Chairman Ajay Tyagi said on the sidelines of an event organised by IIM-Calcutta.

Sandbox concept is something that one can try before implementing it on a larger scale and it allows companies to test products in an environment, particular geography, or among a set of users, before they are rolled out commercially meeting all regulations.

Tyagi said the capital market regulator is also working out whether something new can be tried without any legislative changes.

He pointed out there had been substantial technology interventions in capital markets in the past and it would continue.

The insurance regulator IRDAI has set up a committee to look into the concept of a regulatory sandbox in India.