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Part – IV A Bengaluru, FFRRIIDDAAYY,7, AUGUST,2020 ( Shravana , 16, SShhaakkaaVVaarrsshhaa,1942) No. 340
GGOOVVEERRNNMMEENNTT OOFF KKAARRNNAAKKAATTAA
File No: ITBT 26 AADDMM 22002200 KKaarrnnaattaakkaa GGoovveerrnnmmeenntt
SSeeccrreettaarriiaatt,
5th Stage, MMSS BBuuiillddiinngg,,
BBeennggaalluurruu,, ddaatteedd:: 07.08.2020
NOTIFICATION
The draft of the KKKaaarrrnnnaaatttaaakkkaaa IIInnnnnnooovvvaaatttiiiooonnn AAAuuuttthhhooorrriiitttyyy RRRuuullleeesss,,, 222000222000, which the
GGGooovvveeerrrnnnmmmeeennnttt ooofff KKKaaarrrnnnaaatttaaakkkaaa ppprrrooopppooossseeesss tttooo mmmaaakkkeee iiinnn eeexxxeeerrrccciiissseee ooofff ttthhheee pppooowwweeerrrsss cccooonnnfffeeerrrred
by sub-sseeccttiioonn ((11)) ooff sseeccttiioonn 29 of the Karnataka IInnnnoovvaattiioonn AAuutthhoorriittyy AAcctt,, 22002200
(Karnataka Act 07 of 2020)),, wwaass ppuubblliisshheedd iinn NNoottiiffiiccaattiioonn NNoo:: IITTBBTT 2266 AADDMM 22002200
dddaaattteeeddd:::222222...000666...222000222000 iiinnn pppaaarrrttt IIIVVVAAA NNNooo:::222111444 ooofff ttthhheee KKKaaarrrnnnaaatttaaakkkaaa GGGaaazzzeeetttttteee (((EEExxxtttrrraaa-ordinary)
dated:22.06.2000222000,,, iiinnnvvviiitttiiinnnggg ooobbbjjjeeeccctttiiiooonnnsss///sssuuuggggggeeessstttiiiooonnnsss fffrrrooommm aaallllll pppeeerrrsssooonnnsss llliiikkkeeelllyyy tttooo bbbeee
aaaffffffeeecccttteeeddd ttthhheeerrreeebbbyyy wwwiiittthhhiiinnn 111555 dddaaayyysss fffrrrooommm ttthhheee dddaaattteee ooofff iiitttsss pppuuubbbllliiicccaaatttiiiooonnn iiinnn ttthhheee oooffffffiiiccciiiaaalll
gazette.
AAAnnnddd wwwhhheeerrreeeaaasss ttthhheee sssaaaiiiddd GGGaaazzzeeetttttteee wwwaaasss mmmaaadddeee aaavvvaaaiiilllaaabbbllleee tttooo ttthhheee pppuuubbbllliiiccc ooonnn 222222nd
June 2020.
And whereas, objeeeccctttiiiooonnnsss aaannnddd sssuuuggggggeeessstttiiiooonnnsss rrreeeccceeeiiivvveeeddd wwwiiittthhhiiinnn ttthhheee pppeeerrriiioooddd
ssppeecciiffiieedd aabboovvee hhaavvee bbeeeenn eexxaammiinneedd aanndd ccoonnssiiddeerreedd..
Now, therefore, iiinnn eeexxxeeerrrccciiissseee ooofff ttthhheee pppooowwweeerrrsss cccooonnnfffeeerrrrrreeeddd bbbyyy sssuuubbb-section (1) of
section 29 ooff tthhee KKaarrnnaattaakkaa Innovation Authority Act, 2020 ((KKaarrnnaattaakkaa Act 07 of
2020), ttthhheee GGGooovvveeerrrnnnmmmeeennnttt ooofff KKKaaarrrnnnaaatttaaakkkaaa hhheeerrreeebbbyyy mmmaaakkkeeesss ttthhheee fffooollllllooowwwiiinnnggg rrruuullleeesss,,, nnnaaammmeeelllyyy:::-
RULES
11.. TTiittllee aanndd CCoommmmeenncceemmeenntt..–
(1) TTThhheeessseee rrruuullleeesss mmmaaayyy bbbeee cccaaalllllleeeddd ttthhheee KKKaaarrrnnnaaatttaaakkkaaa IIInnnnnnooovvvaaatttiiiooonnn AAAuuuttthhhooorrriiitttyyy RRRuuullleeesss,,, 222000222000...
(2) TThheeyy sshhaallll ccoommee iinnttoo ffoorrccee from tthhee ddaattee ooff tthheeiirr ppuubblliiccaattion in the Official
Gazette.
(1)2
2. Definitions.–In these rules, unless the context otherwise requires, –
(a) “Act” means the Karnataka Innovation Authority Act, 2020(Karnataka
Act 07 of 2020);
(b) “Application” means an application made in accordance with the Act and
these rules;
(c) “Chairman” means the Chairman of the Authority, referred to in sub-
section (1) of section 4 of the Act;
(d) “Department” means the Department of Electronics, Information
Technology, Biotechnology & Science and Technology of the
Government;
(e) “Entity” means any private entity that has been proposed as the
Sandbox Operator in an application for the establishment of a regulatory
sandbox;
(f) “Ex-officio member” means a member nominated under rule 3;
(g) “Form” means form appended to these rules;
(h) “Party” means any natural or legal person who has made a submission
to the Authority in accordance with the Act and these rules;
(i) “Public Consultation” means public consultation undertaken in
accordance with the Act and these rules;
(j) “Regulations” means the regulations made by the Authority under the
Act;
(k) “Relevant Stakeholders” means parties interested in or affected by any
potential regulatory sandbox set up under the Act including, but not
limited to, industry groups, consumer groups, civil society groups and
non-governmental organisations; and
(l) “Sandbox Plan” means the agreement between the Sandbox Operator
and the participant outlining the approach to be adopted in the sandbox3
which may specify testing parameters, measures for outcomes, reporting
requirements, safeguards, timescale and term of the sandbox.
(m) “Section” means the section of the Act.
(2) All other words and expressions used, but not defined in these rules,
shall have the same meaning assigned to them in the Act.
3. Nomination of Ex-Officio Members.–
(1) The following shall be the Ex-officio members of the Authority, namely: –
(a) The Development Commissioner, Ex-officio member
Government of Karnataka
(b) The Additional Chief Secretary or Ex-officio member
Principal Secretary, Department of
Finance, Government of Karnataka or his
nominee not below the rank of Deputy
Secretary to Government
(c) The Additional Chief Secretary or Ex-officio member
Principal Secretary, Department of
Industries and Commerce, Government of
Karnataka or his nominee not below the
rank of Deputy Secretary to Government
Ex-officio member
(d) The Additional Chief Secretary or
Principal Secretary, Department of Urban
Development, Government of Karnataka
or his nominee not below the rank of
Deputy Secretary to Government
Ex-officio member
(e) The Principal Secretary or Secretary,
Department of Law, Government of
Karnatakaor his nominee not below the
rank of Deputy Secretary to Government
(2) The Chairman of the Authority may invite any Additional Chief Secretary or
Principal Secretary or Secretary to Government in-charge of the department
concerned, taking into account the nature of the applications received, as a
special invitee to the meetings, as required.4
4. Application for establishing a Regulatory Sandbox.
(1) An applicant seeking the establishment of a regulatory sandbox shall
tender an application to the Authority in Form–A.
(2) The applicant shall, along with the application, tender a processing fee of
an amount provided in Annexure-I payable through electronic transfer.
(3) Where the Authority is of the view that an application is incomplete in any
of the material particulars required, it shall return the same to the Applicant with
a written communication indicating the deficiencies in the application.
(4) Any application that has been submitted after being returned in
accordance with sub-rule (3), shall be accompanied by a covering letter from the
applicant indicating how the deficiencies identified have been rectified.
(5) Upon receipt of an application that is complete in all respects, the
Authority shall cause the same to be displayed on its website with all the
necessary annexures, with a link prominently displayed on the website.
(6) Notwithstanding anything contained in sub-rule (5), the Authority may, at
the request of the applicant, retract any private or confidential information as
defined under section 23 of the Act that is not required for the purposes of public
scrutiny of the application.
5. Public Consultation for establishment of Regulatory Sandbox.
(1)On accepting an application for establishing a Regulatory Sandbox, the
Authority shall, within a period of fourteen days of the date of receipt, notify the
general public with the details of the Regulatory Sandbox applied for being set up
and the proposed Sandbox Operator, seeking public comments.
(2) The period of public consultation shall be thirty calendar days from the
date of notice.
(3) The notice shall be deemed to be issued to the public, if such notice is
placed on the website of the Authority and is published in more than two the5
English and Kannada daily newspapers having the wide circulation in the State of
Karnataka.
(4) Within the expiry of thirty days of the issue of notice under sub-rule (1),
the Authority shall conduct the public consultation process in the following
manner, namely:-
(a) On the day of the publication of the notice under sub-rule (1), the
Authority shall publish background information in an easy and
accessible manner on the Authority’s website, describing the problem
being addressed, covering the operational and technical aspects of the
proposed Regulatory Sandbox, impact assessment and other relevant
information.
(b) The notice issued under sub-rule (1) shall invite comments from the
public through the following channels, namely:-
(i) The link provided in the announcement inviting for public
consultation;
(ii) Written submissions to the Member-Secretary of the Authority
to receive comments whose contact details must be provided in
the public notice; and
(iii) Any other communication channel as the Authority may
specify.
(c) The Authority may invite relevant stakeholders and hold public
hearings, open to the general public, with adequate notice and publicity
for the invitee, mentioning the location and time of the hearing, but not
earlier than fifteen days from the date of the issue of the notice.
(d) Upon taking the decision regarding the establishment of the Regulatory
Sandbox, the Authority shall publish on its website the public
comments received in response to the notice under sub-rule (1),
either in original text as received or by preparing a public comments
report with a summary of the major comments, and its responses to
them, along with the announcement of its decision.
(e) On the date of the publication of the decision regarding the
establishment of the Regulatory Sandbox, the Authority shall, along6
with publishing the public comments as per these rules, publish the
names and personal information of the parties who took part in the
public consultation:
Provided that, where a party requests the Authority not to publish such
information, the Authority shall not disclose the same under sub-rule
(e).
(5) In case the Authority determines that it is not feasible or desirable to
establish a Regulatory Sandbox under section 10, the Authority shall publish on
its website the order in writing, providing reasons for the same.
6. Public Consultation for suo-moto establishment of a Regulatory
Sandbox.– (1) In the case of suo-moto establishment of a Regulatory Sandbox
under section 11, the Authority shall notify the public of their order in writing
proposing to establish a Regulatory Sandbox.
(2) Within the expiry of thirty days of the issue of notice under sub-section (2)
of section 11, the Authority shall conduct the public consultation process in the
following manner, namely –
(a) Publishing background information, in an easy and accessible manner, on the
Authority’s website, describing the problem being addressed, covering the
operational and technical aspects of the proposed Regulatory Sandbox, impact
assessment and other relevant information.
(b) The Authority shall invite comments from the public through the
following channels, namely:-
(i) The link provided in the announcement inviting for public
consultation;
(ii) Written submissions to the designated officer authorised to receive
comments whose contact details must be provided in the public
notice; and
(iii) Any other communication channel as the Authority may specify.7
(c) In addition to the above, the Authority may invite relevant stakeholders
and hold public hearings, open to the general public, with adequate notice and
publicity for the invite, mentioning the location and time of the hearing, but not
earlier than fifteen days from the date of the issue of the notice.
(d) Upon taking the decision regarding the establishment of the
Regulatory Sandbox, the Authority shall publish on its website the public
comments received, either in original text as received, or by preparing a public
comments report with a summary of the major comments, and its responses to
them, along with the announcement of its decision.
(e) On the date of the publication of the decision regarding the
establishment of the Regulatory Sandbox, the Authority shall, along with
publishing the public comments as per these rules, publish the names and
personal information of the parties who took part in the public consultation:
Provided that, where a party requests the Authority not to publish such
information, the Authority shall not be required to disclose the same under sub-
rule (e).
(3) In case the Authority decides that it is not feasible or desirable to
establish a Regulatory Sandbox under section 11, the Authority shall publish on
its website the order in writing, providing reasons for the same.
7. Applications to Sandbox Operator for participation in the Regulatory
Sandbox. –
(1)An applicant, seeking to participate in a regulatory sandbox, shall tender an
application to the Sandbox Operator, in the Form B.
(2) The applicant shall, along with the application, tender a processing fee of
an amount provided in Annexure II, through demand draft or e-payment.
(3) Where the Sandbox Operator is of the view that an application is
incomplete on any of the material particulars required, or seeks further
information from the applicant, it shall return the same to the Applicant with a
written order indicating the deficiencies in the application.8
(4) In assessing the applications received, the Sandbox Operator may consult
the Authority from time to time.
(5) Upon satisfaction of the application requirements, the Sandbox Operator
shall intimate the successful applicant, if any, of its approval in writing within
seven days from the date of its decision. A copy of the approval shall be sent to
the Technical Secretariat.
(6) All applications received by the Sandbox Operator for participation in a
Regulatory Sandbox under section 14 shall be published on the website of the
Authority and the Sandbox Operator respectively within thirty days of receipt of
such application, subject to the confidentiality requirements provided in section
23.
8. Terms and Conditions for participants in the Regulatory Sandbox.
(1) In addition to the terms and conditions provided in sub-section (2) of
section 12, every participant in the Regulatory Sandbox shall follow terms and
conditions provided in these rules.
(2) The terms and conditions shall be as follows, namely:–
(a) The benefits conferred due to the participation in the regulatory
sandbox are only applicable to the product, service or solution to the
extent that they are offered or provided in the state of Karnataka.
(b) The participants of the regulatory sandbox are required to maintain
transparency with the Sandbox Operator and Authority in relation to
the proposed innovation during and after completion of participation in
the sandbox. In case of any new information that will affect the terms of
the participation in the regulatory sandbox of the participant, such
information must be shared with the Sandbox Operator immediately.
(c) The participant must provide an undertaking that they shall be
responsible for complying with all applicable legal and regulatory
obligations during the term of the sandbox.
(d) The participant must undertake to comply with the safeguards built
into the sandbox to protect the rights of the consumers, which may9
include but are not limited to, mandatory disclosures of risks to
customers, protecting data privacy, requirements for obtaining
consumer consent, taking out indemnity insurance, making
arrangements to adequately compensate the test subjects for any losses
suffered in connection with particular tests, compliance with dispute
and grievance redressal conditions.
(e) The participants must, in an upfront and transparent way, notify test
customers of potential risks that may arise, the available compensation
and obtain their explicit consent in this regard. They must also provide
an appropriate arrangement for customers to withdraw from the test.
(f) The participant shall be required to take liability or indemnity insurance
of an adequate amount and period to safeguard the interest of the
customers. The adequacy of indemnity cover shall depend on
determination of the maximum liability based on, among others,-
(i) maximum exposure to a single customer;
(ii) the number of claims that will arise from a single event (potential for
multiple claims); and
(iii) number of claims that might be expected during the policy period.
The policy cover shall begin with the start of testing stage and end
three months after the exit of the participant from the Regulatory
Sandbox.
(g) The participant shall not be in violation of any Acts or Rules or
notifications passed by the Central or State Government. In any instance,
where the participant in a regulatory sandbox violates any law in force
outside the scope of the regulatory sandbox, action shall be taken by the
concerned competent authority in accordance with law.
(h) Unless otherwise extended by the Authority, subject to sub-
section (2) of section 12, the participant’s involvement terminates on the
expiry of the agreed upon term under the Sandbox Plan.
(i) In the event that there is no agreed upon term, the Authority shall notify
in writing its intent to end the sandbox and any participation in the
sandbox shall automatically cease with immediate effect.10
(j) The participant must clearly identify to the Sandbox Operator and the
Authority, in writing, which information provided to them is confidential
information, providing clear reasons as to why such information is
deemed confidential. Such information shall be covered under section 23.
(k) The participant shall retain all intellectual property rights in, and
responsibility for, all content and materials that they contribute to the
sandbox, provided that the participant shall only contribute such
intellectual property that they have the right to share, use and develop
and are in compliance with third party licenses, if any.
(l) The participant or the Sandbox Operator may at any time, on providing
two weeks’ notice in writing, terminate the involvement of the participant
in the sandbox.
(3) The participant must undertake to disclose at the application stage, as and
when it may arise, any actual or potential conflict of interest, in the form of any
connections or associations between the participant and their employees with
individuals associated with the Sandbox Operator and the Authority, which may
include,–
(a) spouses, partners, children, parents or other relatives;
(b) business partners, employees, managers or directors; or
(c) any former member of the staff of the Sandbox Operator or the
Authority who is currently employed by the participant, appointed to
the board, or has a substantial interest in the participant.
(4) The Sandbox Operator may at any time revoke, with immediate effect,
the involvement of a participant in the sandbox and cease providing any
regulatory support if –
(a) there is a conflict of interest as provided in sub-rule (3);
(b) the participant commits a material or repeated breach of the
Sandbox Plan or the terms and conditions, which cannot be
remedied; or11
(c) the Authority determines that the conduct of the participant, either
in the course of or outside the sandbox, is contrary to public
interest:
Provided that, the Sandbox Operator shall not revoke the participation
of a participant in the sandbox for any of the reasons specified in this sub-rule
unless the participant in the sandbox has been given an opportunity of being
heard as to why such participation shall not be revoked.
(5) The terms and conditions for participants in the regulatory sandbox
may be subject to further addition by the Authority through regulations, at
any time.
9. Selection of Private Entity as Sandbox Operator.–
(1) In the case of selection of a private entity as Sandbox Operator, the
Authority shall take the following factors into consideration, namely–
(a) that the entity has its registered office in the state of Karnataka;
(b) that the entity shall have been in existence for last 3 years;
(c) that the entity has an ability to provide an effective test environment
that is approved by the Authority and to make it available to the
participants of the Regulatory Sandbox;
(d) that the entity has the capacity to test a product or service or business
model relating to the activities of the participants of the Regulatory
Sandbox;
(e) that the entity is not engaged in any activities that are contrary to
the goals or objectives of the Sandbox or interest of the nation; and
(f) that appointing the entity as Sandbox Operator does not result in a
conflict of interest for the entity.
(2) The Authority shall constitute a sub-committee, comprising of at least three
members drawn from Secretaries of relevant departments, to assess the
suitability of a private entity for designation as Sandbox Operator, upon
satisfaction of the provisions under sub-rule (1) of this rule. The sub-
committee shall make a recommendation to the Authority regarding the same,12
within thirty days from date of application, in accordance with the provisions of
these rules.
10. Powers and Functions of the Member-Secretary.–
The Member-Secretary shall be responsible for,–
(a) the day-to-day administration of the Authority;
(b) drawing up the agenda with the approval of the Chairperson;
(c) matters concerning finance and accounts of the Authority;
(d) drafting the recommendation for the amendment of any Act, Rules or
regulations in force, as deemed necessary in accordance with provisions
of item (c) of sub-section (ii) of Section 7 of the Act.
(e) exercise such other powers and perform such other functions as may
be assigned or delegated by the Chairperson, from time to time.
11. Conduct of Business of the Authority.–
(1) On receipt of an application, the Member-Secretary may convene meetings
as often or as necessary.
(2) The Member-Secretary may also convene meetings whenever the
Chairperson deems it necessary or whenever a request is made in this behalf.
(3) The Member-Secretary shall issue notice to the members of the Authority
for a minimum of seven days, in case of regular meetings and minimum of three
days in case of special meetings.
(4) The notice along the agenda specifying the time, date and place of the
meeting shall be issued under the signature of the Member-Secretary.
(5) The notice, in writing, shall be sent to the members of the Authority either
by hand delivery or by post or by electronic means such as e-mail.
(6) The meeting shall be held within twenty-one days, after completing the
process of public consultation for establishing a regulatory sandbox.
(7) The quorum for the meeting shall be as prescribed under sub-section (5) of
section 5.13
(8) The Member-Secretary shall prepare proceedings and circulate to all
members.
(9) In case of a regular meeting, if within half an hour from the time appointed
for holding said meeting, the quorum is not present, the presiding officer shall
adjourn the meeting to a later hour on the same date, or to a different date.
(10) In case of a special meeting, if within half an hour from the time
appointed for holding such meeting, the quorum is not present, the meeting shall
stand dissolved.
(11) The Member-Secretary may, if deemed necessary and with the approval of
the Chairperson, invite such individuals or experts, as they deem fit, to appear
before the Authority, to obtain their views on any item on the agenda for a
meeting.
12. Minutes of the Meeting.–
(1) The Member-Secretary of the Authority shall be responsible for preparation
of minutes of the meetings of the Authority and circulating the same to all the
members.
(2) The Member Secretary shall be responsible for uploading the minutes in
the official website of the Authority after it is approved by the Chairperson.
(3) The minutes shall be confirmed in the next meeting of the Authority and
the confirmation shall be endorsed in the Minute Book by the Chairperson and
the Member-Secretary.
(4) No member shall be entitled to raise any objection in regard to the text
of the minutes of any meeting unless he was present at the meeting to which it
relates.
(5) No member shall be entitled to raise any objection in regard to the text
of the minutes of any meeting after the minutes have been confirmed by the
Authority.
13. Technical Secretariat.–
(1) For the purpose of this Act, the Karnataka Innovation and Technology
Society (KITS) is designated as the Technical Secretariat.
(2) The functions of the Technical Secretariat are,-14
(a) to provide secretarial support to the Authority, and wherever
relevant, to the Sandbox Operator, to supervise and assist it in
carrying out its functions;
(b) to provide logistic support, including but not limited to, proper
maintenance of records and registers, handling of communication and
correspondence;
(c) to provide technical support including supervising, advising overseeing
on technical and allied matters; and
(d) to provide research support including assistance in vetting the
applications received and verifying compliance.
(3) Subject to prior approval of the Authority, the Technical Secretariat may
engage additional staff for the purpose of carrying on its functions, as it deems
necessary.
14. Accounts and Audits.–(1) The Authority shall maintain such books of
accounts and other registers and prepare an annual statement of accounts in
accordance with the Rules applicable mutatis mutandis to any department of the
Government under the Karnataka Financial Code.
15. Annual Report.– (1)The Authority shall prepare, as soon as may be,
after the commencement of each financial year the Annual Report referred to in
sub-section (1) of section 22.
(2) The annual report shall give an account of the activities during the
previous financial year containing, inter alia,–
(a) A list of the Regulatory Sandboxes established by the Authority and a
list of participants in the Regulatory Sandboxes, along with an
assessment of the success of the Regulatory Sandbox in allowing
innovation.
(b) Recommendations of the Authority to make permanent any
exemptions or modifications of any law which have been granted
under the scheme of this Act.
(3) The Annual Report shall after adoption at a meeting of the Authority be
signed by all the members and authenticated by affixing the common seal of the
Authority.15
(4) Requisite number of copies thereof shall be submitted to the State
Government and to the Legislature by 30th day of September and shall be
published on the website of the Authority.
16.Budget of the Authority. –The Authority shall prepare every year the
Budget of the Authority for ensuing financial year in Form-C before end of
December every year and submit the same to the Government for approval.
By order and in the name of the
Governor of Karnataka
(Shidramappa H Talawar)
Under Secretary to Government,
Department of Electronics, Information Technology,
Biotechnology and Science & Technology
Form– A
(See sub-rule (2) of rule 4)
Application Form to Establish a Regulatory Sandbox
Appendix I: Application form (fill up where applicable)
I. Private Agency
A. Contact details
Applicant
Name of the company
Company Registration
Number
(if applicable)
Authorised regulatory status
(e.g. licensing, registration,
notification, approval,
recognition)
Website URL
Name of key personnel
(e.g. CEO, CFO)
NB: Kindly enclose the
curriculum vitae of the
personnel
e-mail address
Phone number16
Mailing address
Shareholders
Financial standing, including
any funding raised and/or to
be raised
Describe the nature and (Please keep the response below 200 words)
scale of your operations in
Karnataka
Provide details of high
skilled jobs that your
company is creating in
Karnataka
II. Government Agency / Instrumentality
Name of the Institution
Name of the Designated
Officer
Authorisation from Competent < Enclose the Letter of Authorisation >
Authority
e-mail Address
Mailing Address
Phone Number
B. About the product, service or solution
Please provide full details of the proposed service/product to be experimented
in the sandbox, covering the following areas
(Please keep the response below 200 words.
Describe the product, service or
Additional information may be provided as
solution
supporting documents)
Eligibility criteria
Explain how the product, (Please keep the response below 200 words.
service or solution is genuinely Additional information may be provided as
innovative supporting documents)
Problem statements that the
proposed service/product/
solution aims to address
Need for a regulatory sandbox
and the proposed sandbox
operator
Describe how the usefulness
and functionality of the
product, service or solution has
been assessed and/or tested17
Benefits of the proposed
service/product, solution in
particular, those that may not
exist today, for the people in
Karnataka
Business model(s), including
the target customers and
specific use cases. For each use
case, provide an end-to-end
illustration on how the
proposed service/product will
be made available in detail.
Technical architecture and
solution, detailing the specific
technology and innovative ways
in which the technology will be
applied;
Comparison with existing
offerings that are similar to the
proposed service/product
/solution focusing on the
problem statements, benefits,
technology and business
model; and
The readiness of the prototype
development, including an
estimated timeframe on the Please keep the response below 400 words.
readiness to provide an end-to- Additional information may be provided as
end demonstration of the supporting documents)
proposed service/product to
the Authority.
Provide evidence of resources (Please keep the response below 200 words.
available to support testing in Additional information may be provided as
the sandbox supporting documents)
Explain the business plan for
(Please keep the response below 200 words.
the product, service or solution
Additional information may be provided as
to be offered on wider
supporting documents)
commercial scale
Legal and Regulatory Requirements
Please provide full details of the applicable legal/regulatory requirements and
the relaxation that you are seeking in order to deliver the proposed
service/product/ solution in the sandbox
Identify the legal or regulatory
Please keep the response below 400 words.
requirements that are
Additional information may be provided as
incompatible with
supporting documents)
the proposed product18
State the regulatory status (e.g.
Please keep the response below 400 words.
licensing, registration,
Additional information may be provided as
notification, approval,
supporting documents)
recognition) required
Include a legal opinion, if
available, from a qualified legal
practitioner applying the
relevant laws administered by
the State of Karnataka to the
facts of your case
State the specific legal and
regulatory requirements that
you are seeking KIA to relax for
the duration of the sandbox,
and why so; and
Describe how you intend to
meet the full legal and
regulatory requirements before
exiting the sandbox.
Potential risks and safeguards
Please provide full details of the potential risks and safeguards involved in the
delivery of the proposed service / product / solution in the sandbox
Describe the risks associated
(Please keep the response below 400 words.
with the testing and identify
Additional information may be provided as
appropriate risk mitigation
supporting documents)
measures/safeguards
Describe the controls to be put in
place so as to manage risk and
failure in the sandbox, including
technology risks involved
Describe the exit plan from the
sandbox and how the good or
service or solution is intended to
be deployed or operated within
Karnataka after exiting from the
sandbox
Describe how the deployment of
this good or service or solution is
in larger public interest,
including, inter alia, the ability of
the good or service or solution to
generate employment in
Karnataka.
Sandbox Design
Please provide full details of the proposed sandbox design, covering the following
areas19
Describe the experiments to be
conducted in the sandbox,
including specific testing of the
application of technology in the
proposed service/product /
solution.
State and justify the sandbox
boundaries
Start and end date of the
sandbox
Limit on the type (e.g. retail,
accredited) of customers involved
Limit on the number of
customers involved
Quantification of the maximum
loss and impact, including any
potential knock-on effects
State the geographical area
within which the test is to be
conducted
State the location of the IT
infrastructure
State the source of funding for
the testing
Explain the intended key
outcomes of the testing
Other relevant information
Any other information that may
support the application20
Form – B
(See Rule 7)
Application to Sandbox Operator to participate in a Regulatory Sandbox
A. Contact details
Applicant
Name of the company
Company Registration
Number
(if applicable)
Authorised regulatory status
(e.g. licensing, registration,
notification, approval,
recognition)
Website URL
Name of key personnel
(e.g. CEO, CFO)
NB: Kindly enclose the
curriculum vitae of the
personnel
e-mail address
Phone number
Mailing address
Shareholders
Financial standing, including
any funding raised and/or to
be raised
Describe the nature and (Please keep the response below 200 words)
scale of your operations in
Karnataka
Provide details of high
skilled jobs that your
company is creating in
Karnataka
B. About the product, service or solution
Please provide full details of the proposed service / product to be experimented
in the sandbox, covering the following areas
(Please keep the response below 200 words.
Describe the product, service or Additional information may be provided as
solution supporting documents)21
Eligibility criteria
Explain how the product, (Please keep the response below 200 words.
service or solution is within the Additional
scope of the Regulatory information may be provided as supporting
Sandbox. documents)
Explain how the product,
service or solution is genuinely
innovative, distinct from the
available offerings in the same
market and explain how it
utilises a new technology or
existing technology in a novel
manner.
Identifiable benefits of the
proposed service/product,
solution in particular, for the
consumers in Karnataka
Technical architecture and
solution, detailing the specific
technology and innovative ways
in which the technology will be
applied;
Comparison with existing
offerings that are similar to the
proposed service / product /
solution focusing on the
problem statements, benefits,
technology and business
model; and
The readiness of the prototype
development, including an
Please keep the response below 400 words.
estimated timeframe on the
Additional
readiness to provide an end-to-
information may be provided as supporting
end demonstration of the
documents)
proposed service/product to
the Authority.
(Please keep the response below 200 words.
Provide evidence of resources
Additional
available to support testing in
information may be provided as supporting
the sandbox
documents)
Explain the business plan for (Please keep the response below 200 words.
the product, service or solution Additional
to be offered on wider information may be provided as supporting
commercial scale documents)
Describe the experiments to be
conducted in the sandbox,
including specific testing of the
application of technology in the
proposed service / product /22
solution.
State and justify the requested
sandbox boundaries
Time Period during which the
proposed good or service or
innovation may be offered to
the prescribed customers.
Limit on the type (e.g. retail,
accredited) of customers
involved
Limit on the number of
customers involved
Quantification of the maximum
loss and impact, including any
potential knock-on effects
State the geographical area
within which the proposed good
or service or innovation may be
offered to the prescribed
customers.
State the location of the IT
infrastructure
State the source of funding for
the testing
Explain the intended key
outcomes of the testing
Describe the measures that will
be undertaken to protect data
security, confidentiality and
consumer privacy
Legal and Regulatory Requirements
Please provide full details of the applicable legal/regulatory requirements and
the relaxation that you are seeking in order to deliver the proposed
service/product/ solution in the sandbox
Identify the legal or regulatory Please keep the response below 400 words.
requirements that are Additional
incompatible with information may be provided as supporting
the proposed product documents)
State the regulatory status (e.g. Please keep the response below 400 words.
licensing, registration, Additional
notification, approval, information may be provided as supporting
recognition) required documents)
Include a legal opinion, if
available, from a qualified legal
practitioner applying the
relevant laws administered by
the State of Karnataka to the
facts of your case23
State the specific legal and
regulatory requirements that
you are seeking KIA to relax for
the duration of the sandbox,
and why so; and
Describe how you intend to
meet the full legal and
regulatory requirements before
exiting the sandbox.
Potential risks and safeguards
Please provide full details of the potential risks and safeguards involved in the
delivery of the proposed service / product / solution in the sandbox
Describe the risks associated
with the testing and identify (Please keep the response below 400 words.
appropriate risk mitigation Additional information may be provided as
measures/safeguards to supporting documents)
protect consumers
Describe the controls to be put
in place so as to manage risk
and failure in the sandbox,
including technology risks
involved
Describe the exit plan from the
sandbox and how the product
or service or solution is
intended to be deployed or
operated within Karnataka
after exiting from the sandbox
Describe how this product or
service or solution is suited for
large-scale deployment after
the expiry of the period of
testing in the regulatory
sandbox
Describe how the deployment
of this good or service or
solution is in larger public
interest, including, inter alia,
the ability of the good or service
or solution to generate
employment in Karnataka.
Other relevant information
Any other information that may
support the application24
Form - C
(See rule 16)
Budget of the Authority
For the year _________
Previous Fiscal Year: Current Fiscal Year: Next Fiscal Year:
S. Expenditure ____________ __________ ___________
No. Classification Actual Budgeted Requested
Total
Annual Statement of Accounts
Receipts and Payments Accounts
For the year _____________
Current
Year Previous Current Previous
As On Year Year Year
S. S.
(in As On As On As On
No. Receipts No. Payments
Rupees) (in Rupees) (in Rupees) (in Rupees)
To Balance Brought By Chairman and
1. Down 8. Members
Pay and
1.1 Bank 8.1 Allowances
1.2 Cash in Hand 8.2 Other Benefits
To Fee, Charges and
2. Fines 8.3 Travel Expenses
3. To Grants 8.3.1 Overseas
To Income on
Investments and
4. Deposits 8.3.2 Domestic
5. To Loans 9. By Officers
Pay and
6. To Sale of Assets 9.1 Allowances
Retirement
7. Others (specify) 9.2 Benefits
9.3 Other Benefits
9.4 Travel Expenses
10. By Staff
Pay and
10.1 Allowances
Retirement
10.2 Benefits
10.3 Other Benefits
10.4 Travel Expenses
11. By Wages
12. By Overtime
13. By Honorarium
By Consultation
14. Expenditure
15. By Research25
Expenditure
By Seminars and
16. Conferences
17. By Publications
By Rent and
18. Taxes
By Interest on
19. Loans
20. By Subscription
By Investments
21. and Deposits
By Loans and
22. Advances
23. By Others / Misc.
By Balance
24. Carried Down
24.1 Bank
24.2 Cash in Hand
Total Total
Income and Expenditure Account
For the year _____________
S. Expenditure Current Previous S. Income Current Previous
No. Year Year No. Year Year
As on As on As on As on
(in (in Rupees) (in Rupees) (in Rupees)
Rupees)
25. To Chairman and 41. By Fees, Charges and
Members Fines
25.1 Pay and Allowances 41.1 By Fees
25.2 Other Benefits 41.2 By Charges
25.3 Travel Expenses 41.3 By Fines
26. To Officers 42. By Others (Specify)
26.1 Pay and Allowances 43. By Grants
26.2 Retirement Benefits 44. By Sale of Publications
26.3 Travel Expenses 45. By Gift / Contributions
27. To Wages 46. By Seminars and
Conferences
28. To Overtime 47. By Income on Deposits
and Investments
29. To Honorarium 48. By Miscellaneous
Income
30. To Consultation
Expenditure
31. To Other Office
Expenses
32. To Research
Expenditure
33. To Seminars and
Conferences
34. To Publications of the
Innovation Authority
35. To Rent and Taxes
36. To Subscription26
37. To Other Expenses
38. To Depreciation
39. To Excess of Income
over Expenditure
40. To Provision of Bad
Debts
Total Total
Member(s) (Signature)
Chairperson (Signature)
Balance Sheet as on _____________
Current Previous Current Previous
Year Year Year Year
S. As on As on S. As on As on
No. Liabilities (in Rupees) (in Rupees) No. Assets (in Rupees) (in Rupees)
49. Funds 53. Fixed Assets
Capital Work-in-
49.1 Capital Fund 54. Progress
Excess of Income over Investments and
49.2 Expenditure 55. Deposits
49.3 Other Funds (Specify) 56. Loans and Advances
Cash and Bank
50. Reserves 57. Balances
51. Loans 58. Other Current Assets
Current Liabilities and
52. Provisions
Total Total
Accounting Policies and Notes:
Member(s) (Signature)
Chairperson (Signature)27
Annexure – I
(See sub-rule (2) of rule 4)
Fee Structure for Application for Establishing Regulatory Sandbox
Processing Fees for Government Agency - NIL
Processing Fees for Companies(Rs.)
Paid Up Capital - Up to 50 Million (5 Crores) Rs. 5,00,000/- + (18% GST)
Paid Up Capital - Up to 50 to 100 Million (5 -10
Rs. 10,00,000/- + (18% GST)
Crores)
Paid Up Capital - Up to 100 to 150 Million (10 -15
Rs. 15,00,000/- + (18% GST)
Crores)
Paid Up Capital - Up to 150 to 500 Million (15 -50
Rs. 20,00,000/- + (18% GST)
Crores)
Paid Up Capital - Up to 500 to 1000 Million (50 -100
Rs. 25,00,000/- + (18% GST)
Crores)
Paid Up Capital - Above 1 Billion (Above 100 Crores) Rs. 30,00,000/- + (18% GST)
Paid Up Capital - Above 10 Billion (Above 1000
Rs. 40,00,000/- + (18% GST)
Crores)R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19
Licensed to post without prepayment WPP No. 297
28
Annexure – II
[See rule 7 (2)]
Fee Structure for Application for Participation in Regulatory Sandbox
Processing Fees for Companies(Rs.)
Paid Up Capital - Up to 50 Million (5 Crores) Rs. 20,000/- + (18% GST)
Paid Up Capital - Up to 50 to 100 Million (5 -10 Crores) Rs. 40,000/- + (18% GST)
Paid Up Capital - Up to 100 to 150 Million (10 -15 Crores) Rs. 60,000/- + (18% GST)
Paid Up Capital - Up to 150 to 500 Million (15 -50 Crores) Rs. 80,000/- + (18% GST)
Paid Up Capital - Up to 500 to 1000 Million (50 -100 Rs. 1,00,000/- + (18%
Crores) GST)
Rs. 2,00,000/- + (18%
Paid Up Capital - Above 1 Billion (Above 100 Crores)
GST)
Rs. 4,00,000/- + (18%
Paid Up Capital - Above 10 Billion (Above 1000 Crores)
GST)
By order and in the name of the
Governor of Karnataka
(Shidramappa H Talawar)
Under Secretary to Government,
Department of Electronics, Information Technology,
Biotechnology and Science & Technology
ಮುದ(cid:206)ಕರು (cid:178)ಾಗೂ ಪ(cid:206)(cid:144)ಾಶಕರು:- ಸಂಕಲ(cid:163)ಾ(cid:297)(cid:144)ಾ(cid:312)ಗಳ(cid:133), ಕ(cid:163)ಾ(cid:143)ಟಕ (cid:170)ಾಜ(cid:205)ಪತ(cid:206), ಸ(cid:144)ಾ(cid:143)(cid:312) (cid:144)ೇಂದ(cid:206) ಮುದ(cid:206)(cid:158)ಾಲಯ, (cid:166)ೆಂಗಳ(cid:136)ರು