Amendment status not verified — confirm the current text below against the official source.
Participation in the Regulatory Sandbox.-(1)A Sandbox Operator shall, within thirty days from the date of notification of a Regulatory Sandbox under section 13, call for applications from any person desiring to participate in the Regulatory Sandbox. (2) No person shall be eligible to make any application under sub-section (1) unless,- (a) he carries on business or has a registered office or branch office in Karnataka; and (b) the goods or service sought to be tested in the Regulatory Sandbox are proposed to be deployed in or operated in a larger scale, from Karnataka. (3) The application shall be in such form and in such manner as may be prescribed, and shall indicate the manner in which the proposed participant fulfils the conditions laid down by the Authority to participate in the regulatory sandbox, as well as the criteria laid down under sub-section (5). (4) The Sandbox Operator, shall, within a period of thirty days from the receipt of any application under this section either reject an application, or approve it. In approving 8 or rejecting any application for participation in the Regulatory Sandbox, it shall ensure the proposed participant meets the following criteria that,- (a) the goods or services are provided within the scope of the Regulatory Sandbox; (b) there are regulatory barriers in the form of any laws which restrict or prohibit the deployment of the goods or services; (c) the goods or services offered by such person is ready for testing in the market and the proposed participant has a well-developed testing plan for implementing the goods or services within the Regulatory Sandbox; (d) there is a genuine innovation, significantly different from available offerings in the same market, which utilizes a new technology or utilizes existing technology in a novel manner; (e) the goods or services deliver an identifiable benefit to consumers within Karnataka; (f) the deployment of the goods or services is in the larger public interest, including, inter alia, the ability of the goods or services to generate employment in Karnataka; (g) the goods or services does not expose consumers to significant levels of risks of harms, injuries or losses; (h) the proposed participant has the ability to, and the goods or services is capable of, deployment at a larger scale after the expiry of the period of testing under the Regulatory Sandbox; and (i) the goods or services are designed to be deployed or operated from and within the Karnataka under the existing Regulatory Sandbox. (5) The Sandbox Operator may, for the purpose of assessing the applications made under this section,- (a) consult the Authority; or (b) request for any information from the proposed participant. (6) Any order of approval or rejection of any application under sub-section (4) shall be accompanied by reasons in writing and shall be published on the website of the Authority and the Sandbox Operator. (7) The Sandbox Operator, may, before approving any application, upon consultation with the proposed participant, recommend further terms or conditions for participation of the applicant in the Regulatory Sandbox, to be notified by the Authority under section 15. (8) A participant may begin testing the approved goods or services in the Regulatory Sandbox as soon as the order of approval of their participation has been made under this section. (9) No material changes to the goods or services offered by a participant in a Regulatory Sandbox shall be made without obtaining the prior approval of the Sandbox Operator in writing. Note: For the purpose of this sub-section, material changes are any changes which affect the criteria for evaluation of the goods or services under sub-section (4). (10) The Sandbox Operator shall, upon consultation with each participant, recommend the transition strategy to be followed by the participant to ensure the protection of consumers and the compliance with laws in the event of the expiry or withdrawal of the Regulatory Sandbox under section 16. 9 (11) Such information about the participants in the Regulatory Sandbox shall be disclosed on the website of the Authority and the Sandbox Operator, as may be prescribed.