(1)Notwithstanding anything contained in section 9, where the Authority is of the view that it is necessary to do so, it may, on its own motion, establish a Regulatory Sandbox and designate a Sandbox Operator, in accordance with the procedure under section 13.
(2) A decision to establish a Regulatory Sandbox under sub-section (1) shall be taken in accordance with the following procedure, namely:-
(a) A notice shall be issued to the general public with the details of the Regulatory Sandbox proposed to be set up and the proposed Sandbox Operator, inviting submissions for inputs within a period of [thirty days] from the date of the notice.
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Explanation: 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 an English newspaper and a Kannada newspaper having the highest circulation in the State.
(b) The Authority shall, after the expiry of thirty days from the date of issue of the notice under clause (a), hold a public consultation, in such manner as may be prescribed, seeking inputs from stakeholders on the feasibility and desirability of setting up the Regulatory Sandbox.
(c) The Authority shall seek the inputs and recommendations of the proposed Sandbox Operator on the feasibility and desirability of the proposed Regulatory Sandbox.
(3) Where the Authority is of the opinion that it is feasible and desirable to establish the proposed Regulatory Sandbox, it shall,-
(a) make an order in writing, indicating the need for such Regulatory Sandbox, with specific reference to the need to provide exemptions or modifications of any law for promoting the innovation in question subject to such conditions as it deem fit and the potential for such innovation to provide wider benefits to society, and;
(b) establish a Regulatory Sandbox by notification under Section 13.
(4) Where the Authority is of the opinion that it is not feasible or desirable to set up the proposed Regulatory Sandbox, or that such innovation does not require the relaxation or exemption from any law for its promotion, it shall reject the application through an order in writing.