rise in private debt. Due to increased competition, established lenders are often reluctant to include NBFIs into existing credit-information sharing arrangements. Additionally, NBFIs often lack the technological capabilities necessary to participate in information sharing networks. In general, NBFIs also contribute less information to credit-reporting agencies than do banks. For continual growth and sustenance of NBFCs, it is important to have a regulation around them while maintaining their innovativeness. An introduction of regulatory sandbox in different ecosystem will help them achieve the desired results. Many countries have adopted Regulatory Sandbox and soon more will adopt. Types Risk-pooling institutions Insurance companies underwrite economic risks associated with illness, death, damage and other risks of loss. In return to collecting an insurance premium, insurance companies provide a contingent promise of economic protection in the case of loss. There are two main types of insurance companies: general insurance and life insurance. General insurance tends to be short-term, while life insurance is a longer-term contract, which terminates at the death of the insured. Both types of insurance, life and general, are available to all sectors of the community. Although insurance companies do not have banking licenses, in most countries insurance has a separate form of regulation specific to the insurance business and may well be covered by the same financial regulator that also covers banks. There have also been a number of instances where insurance companies and banks have merged thus creating insurance companies that do have banking licenses. Contractual savings institutions Contractual savings institutions (also called institutional investors) run investment funds like pension and mutual funds. They give individuals the opportunity to invest in funds as fiduciaries rather than as principals. Funds pool resources from individuals and firms into various financial instruments including equity, debt, and derivatives. The individual holds equity in the fund itself, rather directly in the investments. The two main types of mutual funds are open-end and closed-end funds. Open-end funds generate new investments by allowing the public to purchase new shares at any time, and shareholders can liquidate their holding by selling the shares back to the open-end fund at the net asset value. Closed-end funds issue a fixed number of shares in an IPO. In this case, the shareholders capitalize on the value of their assets by selling their shares in a stock exchange. Mutual funds are usually distinguished by the nature of their investments. For example, some funds specialize