(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 subcommittee 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.