Regulatory sandboxes and financial market education: empowering smes and retail investors for IPO participation

Abstract

Regulatory sandboxes are emerging as innovative tools to foster Initial Public Offerings (IPOs) in developing
economies by providing a controlled environment for firms to test public offerings under relaxed regulatory conditions.
This paper explores the use of regulatory sandboxes for IPOs in emerging markets, examining their effectiveness in
reducing regulatory burdens and promoting capital market development.