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                        CHAPTER VII 

     DIGITAL  SIGNATURE CERTIFICATES

 

35. Certifying Authority to issue Digital Signature Certificate. 

(1) Any person may make an application to the Certifying Authority for the issue of a Digital Signature Certificate in such form as may be prescribed by the Central Government

(2) Every such application shall be accompanied by such fee not exceeding twenty five thousand rupees as may be prescribed by the Central Government, to be paid to the Certifying Authority:

Provided that while prescribing fees under sub-section (2) different fees may be prescribed for different classes of applicants'.

(3) Every such application shall be accompanied by a certification practice statement or where there is no such statement, a statement containing such particulars, as may be

specified by regulations.

(4) On receipt of an application under sub-section (1), the Certifying Authority may, after consideration of the certification practice statement or the other statement under subsection(3) and after making such enquiries as it may deem fit, grant the Digital Signature Certificate or for reasons to be recorded in writing, reject the application:

Provided that no Digital Signature Certificate shall be granted unless the Certifying Authority is satisfied that—

(a) the applicant holds the private key corresponding to the public key to be listed in the Digital Signature Certificate;

(b) the applicant holds a private key, which is capable of creating a digital signature;

(c) the public key to be listed in the certificate can be used to verify a digital signature affixed by the private key held by the applicant:

Provided further that no application shall be rejected unless the applicant has been given a reasonable opportunity of showing cause against the proposed rejection.

36.  Representations upon issuance of Digital Signature Certificate. 

A Certifying Authority while issuing a Digital Signature Certificate shall certify that-- 

(a) it has complied with the provisions of this Act and the rules and regulations made thereunder,
    
(b) it has published the Digital Signature Certificate or otherwise made it available to such person relying on it and the subscriber has accepted it;

(c) the subscriber holds the private key corresponding to the public key, listed in the Digital Signature Certificate;
          
(d) the subscriber's public key and private key constitute a functioning key pair,

(e) the information contained in the Digital Signature Certificate is accurate; and

(f) it has no knowledge of any material fact, which if it had been included in the Digital Signature Certificate would adversely affect the reliability of the representations made in clauses (a) to (d).

37.  Suspension of Digital Signature Certificate. 

(1) Subject to the provisions of sub-section (2), the Certifying Authority which has issued a Digital Signature Certificate may suspend such Digital Signature Certificate,—

(a) on receipt of a request to that effect from—

(i) the subscriber listed in toe Digital Signature Certificate; or  
(ii) any person duly authorized to act on behalf of that subscriber, 

(b) if it is of opinion that the Digital Signature Certificate should be suspended in public interest



(2) A Digital Signature Certificate shall not be suspended for a period exceeding fifteen days unless the subscriber has been given an opportunity of being heard in the matter.


(3) On suspension of a Digital Signature Certificate under this section, the Certifying Authority shall communicate the same to the subscriber.

38. Revocation of Digital Signature Certificate.

(1) A Certifying Authority may revoke a Digital Signature Certificate issued by it— 
(a) where the subscriber or any other person authorised by him makes a request to that effect; or

(b) upon the death of the subscriber, or

(c) upon the dissolution of the firm or winding up of the company where the subscriber is a firm or a company.


(2) Subject to the provisions of sub-section (3) and without prejudice to the provisions of sub-section (1), a Certifying Authority may revoke a Digital Signature Certificate
which has been issued by it at any time, if it is of opinion that—

(a) a material fact represented in the Digital Signature Certificate is false or has been concealed;

(b) a requirement for issuance of the Digital Signature Certificate was not satisfied;

(c) the Certifying Authority's private key or security system was compromised in a manner materially affecting the Digital Signature Certificate's reliability;

(d) the subscriber has been declared insolvent or dead or where a subscriber is a firm or a company, which has been dissolved, wound-up or otherwise ceased to
exist     


(3) A Digital Signature Certificate shall not be revoked unless the subscriber has been
given an opportunity of being heard in the matter.


(4) On revocation of a Digital Signature Certificate under this section, the Certifying Authority shall communicate the same to the subscriber.

39.  Notice of suspension or revocation. 

(1) Where a Digital Signature Certificate is suspended or revoked under section 37 or section 38, the Certifying Authority shall publish a notice of such suspension or revocation, as the case may be, in the repository specified in the Digital Signature Certificate for publication of such notice. 
          

(2) Where one or more repositories are specified, the Certifying Authority shall publish notices of such suspension or revocation, as the case may he. in all such repositories. 

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                                     CHAPTER VI
             REGULATION OF CERTIFYING
                          AUTHORITIES

 

17.  Appointment of Controller and other officers. 

(1) The Central Government may, by notification in the Official Gazette, appoint a Controller of Certifying Authorities for the purposes of this Act and may also by the same or subsequent notification appoint such number of Deputy Controllers and Assistant Controllers as it deems fit.


(2) The Controller shall discharge his functions under this Act subject to the general control and directions of the Central Government.


(3) The Deputy Controllers and Assistant Controllers shall perform the functions assigned to them by the Controller under the general superintendence and control of the Controller.


(4) The qualifications, experience and terms and conditions of service of Controller, Deputy Controllers and Assistant Controllers shall be such as may be prescribed by the Central Government.


(5) The Head Office and Branch Office of the office of the Controller shall be at such places as the Central Government may specify, and these may be established at such places as the Central Government may think fit.


(6) There shall be a seal of the Office of the Controller.

 

18.  Functions of Controller.

The Controller may perform all or any of the following functions, namely:—

(a) exercising supervision over the activities of the Certifying Authorities;

(b) certifying public keys of the Certifying Authorities;

(c) laying down the standards to be maintained by the Certifying Authorities;

(d) specifying the qualifications and experience which employees of the Certifying Authorities should possess;

(e) specifying the conditions subject to which the Certifying Authorities shall conduct their business;

(f) specifying the contents of written, printed or visual materials and advertisements that may be distributed or used in respect of a Digital Signature Certificate and the public key; 

(g) specifying the form and content of a Digital Signature Certificate and the key,

(h) specifying the form and manner in which accounts shall be maintained by the Certifying Authorities;

(i) specifying the terms and conditions subject to which auditors may be appointed and the remuneration to be paid to them;

(j) facilitating the establishment of any electronic system by a Certifying Authority either solely or jointly with other Certifying Authorities and regulation of such systems;

(k) specifying the manner in which the Certifying Authorities shall conduct their dealings with the subscribers;

(l) resolving any conflict of interests between the Certifying Authorities and the subscribers;

(m) laying down the duties of the Certifying Authorities;

(n) maintaining a data base containing the disclosure record of every Certifying Authority containing such particulars as may be specified by regulations, which shall be accessible to public.

19. Recognition of foreign Certifying Authorities.

(1) Subject to such conditions and restrictions as may be specified by regulations, the Controller may with the previous approval of the Central Government, and by notification in
the Official Gazette, recognize any foreign Certifying Authority as a Certifying Authority for the purposes of this Act.


(2) Where any Certifying Authority is recognized under sub-section (1), the Digital Signature Certificate issued by such Certifying Authority shall be valid for the purposes of

this Act.

(3) The Controller may, if he is satisfied that any Certifying Authority has contravenedany of the conditions and restrictions subject to which it was granted recognition under subsection(1) he may, for reasons to be recorded in writing, by notification in the Official Gazette, revoke such recognition.

20. Controller to act as repository.  

   

(1) The Controller shall be the repository of all Digital Signature Certificates issued under this Act.

(2) The Controller shall—

(a) make use of hardware, software and procedures that are secure .iJmintrusion and misuse;

(b) observe such other standards as may be prescribed by the Central Government,to ensure that the secrecy and security of the digital signatures are assured.

(3) The Controller shall maintain a computerised data base of all public keys in such a

manner that such data base and the public keys are available to any member of the public. 

 

21.  Licence to issue Digital Signature Certificates. 

(1) Subject to the provisions of sub-section (2), any person may make an application, to the Controller, for a licence to issue Digital Signature Certificates.

(2) No licence shall be issued under sub-section (1), unless the applicant fulfills such requirements with respect to qualification, expertise, manpower, financial resources and 

other infrastructure facilities, which are necessary to issue Digital Signature Certificates as may be prescribed by the Central Government

(3) A licence granted under this section shall—

(a) be valid for such period as may be prescribed by the Central Government;

(b) not be transferable or heritable;

(c) be subject to such terms and conditions as may be specified by the regulations.

22. Application for licence.

(1) Every application for issue of a licence shall be in such form as may be prescribed by the Central Government.

(2) Every application for issue of a licence shall be accompanied by—

(a) a certification practice statement;

(b) a statement including the procedures with respect to identification of the applicant;

(c) payment of such fees, not exceeding twenty-five thousand rupees as may be prescribed by the Central Government;

(d) such other documents, as may be prescribed by the Central Government.

 

23. Renewal of licence.

An application for renewal of a licence shall be—   

(a) in such form;

(b) accompanied by such fees, not exceeding five thousand rupees,as may be prescribed by the Central Government and shall be made not less than forty-five

days before the date of expiry of the period of validity of the licence.

24. Procedure for grant or rejection of licence. 

The Controller may, on receipt of an application under sub-section (1) of section 21, after considering the documents accompanying the application and such other factors, as

he deems fit, grant the licence or reject the application:

Provided that no application shall be rejected under this section unless the applicant has been given a reasonable opportunity of presenting his case.

25. Suspension of licence. 

(1) The Controller may, if he is satisfied after making such inquiry, as he may think fit, that a Certifying Authority has,—

(a) made a statement in, or in relation to, the application for the issue or renewal of the licence, which is incorrect or false in material particulars;

(b) failed to comply with the terms and conditions subject to which the licence was granted;

(c) failed to maintain the standards specified under clause(b) of

sub-section(2) of section 20;

(d) contravened any provisions of this Act, rule, regulation or order made thereunder,revoke the licence:

Provided that no licence shall be revoked unless the Certifying Authority has been given a

reasonable opportunity of showing cause against the proposed revocation.

(2) The Controller may, if he has reasonable cause to believe that there is any ground for revoking a licence under sub-section (1), by order suspend such licence pending the completion of any inquiry ordered by him:

Provided that no licence shall be suspended for a period exceeding ten days unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed suspension.

(3) No Certifying Authority whose licence has been suspended shall issue any Digital Signature 

Certificate during such suspension.

26. Notice of suspension or revocation of licence.  

(1) Where the licence of the Certifying Authority is suspended or revoked, the Controller shall publish notice of such suspension or revocation, as the case may be, in the database maintained by him. 

(2) Where one or more repositories are specified, the Controller shall publish notices of such suspension or revocation, as the case may be, in all such repositories: 

Provided that the data base containing the notice of such suspension or revocation, as the case may be, shall be made available through a web site which shall be accessible round the clock: 

Provided further that the Controller may, if he considers necessary, publicise the contents of database in such electronic or other media, as he may consider appropriate.

 

27. Power to delegate.

The Controller may, in writing, authorize the Deputy Controller, Assistant Controller or any officer to exercise any of the powers of the Controller under this Chapter.

28. Power to investigate contraventions. 

(1) The Controller or any officer authorized by him in this behalf shall take up for investigation any contravention of the provisions of this Act, rules or regulations made thereunder.

(2) The Controller or any officer authorised by him in this behalf shall exercise the like powers which are conferred on Income-tax authorities under Chapter XIII of the Income-tax Act, 1961 and shall exercise such powers, subject to such limitations laid down under that Act. 

29. Access to computers and data.

(1)Without prejudice to the provisions of sub-section (1) of section 69, the Controller or any person authorised by him shall, if he has reasonable cause to suspect that any contravention of the provisions of this Act, rules or regulations made thereunder has been committed, have access to any

computer system, any apparatus, data or any other material connected with such system, for the purpose of searching or causing a search to be made for obtaining any information or data contained in or available to such computer system. 

(2) For the purposes of sub-section (1), the Controller or any person authorized by him may, by order, direct any person in charge of, or otherwise concerned with the operation of, the computer system, data apparatus or material, to provide him with such reasonable technical and other assistance

as he may consider necessary.

 

30. Certifying Authority to follow certain procedures. 

Every Certifying Authority shall, — 

(a) make use of hardware, software and procedures that are secure from intrusion and misuse;

(b) provide a reasonable level of reliability in its services which are reasonably suited to the performance of intended functions;

(c) adhere to security procedures to ensure that the secrecy and privacy of the digital signatures are assured; and

(d) observe such other standards as may be specified by regulations. 

31. Certifying Authority to ensure compliance of the Act, etc.

Every Certifying Authority shall ensure that every person employed or otherwise engaged by it complies, in the course of his employment or engagement, with the provisions of this Act, rules,regulations and orders made thereunder. 

32. Display of licence.

Every Certifying Authority shall display its licence at a conspicuous place of the premises in 

which it carries on its business.

33. Surrender of licence.  

(1) Every Certifying Authority whose licence is suspended or revoked shall immediately after such suspension or revocation, surrender the licence to the Controller. 

(2) Where any Certifying Authority fails to surrender a licence under sub-section (1), the person in whose favour a licence is issued, shall be guilty of an offence and shall be punished with

imprisonment which may extend up to six months or a fine which may extend up to ten thousand rupees or with both. 

34. Disclosure.

(1) Every Certifying Authority shall disclose in the manner specified by regulations

(a) its Digital Signature Certificate which contains the public key corresponding to the private key used by that Certifying Authority to digitally signal other Digital Signature Certificate;

(b)  any certification practice statement relevant thereto;

(c) notice of the revocation or suspension of its Certifying Authorcertificate, if any; and

(d) any other fact that materially and adversely affects either the reliability a Digital Signature Certificate, which that Authority has issued, or the Authorityability to perform its services.

(2) Where in the opinion of the Certifying Authority any event has occurred or an situation has arisen which may materially and adversely affect the integrity of computer system or the conditions subject to which a Digital Signature Certificate ungranted, then, the Certifying Authority shall—

(a) use reasonable efforts to notify any person who is likely to be affected by that occurrence; or

(b) act in accordance with the procedure specified in its certification practice statement to deal with such event or situation.

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                             CHAPTER V

 SECURE  ELECTRONIC RECORDS AND SECURE DIGITAL SIGNATURES

14. Secure electronic record.

Where any security procedure has been applied to an electronic record at a specific point of time. then such record shall be 

deemed to be a secure electronic record from such point of time to the time of verification.

15.  Secure digital signature.

If, by application of a security procedure agreed to by the parties concerned, it can be verified that a digital signature, at the time it was affixed, was—

(a) unique to the subscriber affixing it;

(b) capable of identifying such subscriber;

(c) created in a manner or using a means under the exclusive control of the subscriber and is linked to the electronic record to which it relates in such a manner that if the electronic record was altered the digital signature would be invalidated,

then such digital signature shall be deemed to be a secure digital signature.

 

16.  Security procedure. 

The Central Government shall for the purposes of this Act prescribe the security procedure having regard to commercial circumstances prevailing at the time when the

procedure was used, including—

(a) the nature of the transaction;

(b) the level of sophistication of the parties with reference to their technological capacity;

(c) the volume of similar transactions engaged in by other parties;

(d) the availability of alternatives offered to but rejected by any party;

(e) the cost of alternative procedures; and

(f) the procedures in general use for similar types of transactions or communications.

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                        CHAPTER IV
ATTRIBUTION, ACKNOWLEDGMENT AND DESPATCH OF ELECTRONIC  RECORDS

11. Attribution of electronic records. 

An electronic record shall be attributed to the originator—

(a) if it was sent by the originator himself;

(b) by a person who had the authority to act on behalf of the originator in respect of that electronic record; or

(c) by an information system programmed by or on behalf of the originator to operate automatically.

12.Acknowledgment of receipt.

(1) Where the originator has not agreed with the addressee that the acknowledgement of receipt of electronic record be given in a particular form or by a particular method, an acknowledgment may be given by—

(a) any communication by the addressee, automated or otherwise; or

(b) any conduct of the addressee, sufficient to indicate to the originator that
the electronic record has been received.


(2) Where the originator has stipulated that the electronic record shall be binding only on receipt of an acknowledgment of such electronic record by him, then unless acknowledgment has been so received, the electronic record shall be deemed to have been never sent by the originator.


(3) Where the originator has not stipulated that the electronic record shall be binding only on receipt of such acknowledgment, and the acknowledgment has not been
received by the originator within the time specified or agreed or, if no time has been specified or agreed to within a reasonable time, then the originator may give notice to the
addressee stating that no acknowledgment has been received by him and specifying a reasonable time by which the acknowledgment must be received by him and if no acknowledgment is received within the aforesaid time limit he may after giving notice to the addressee, treat the electronic record as though it has never been sent.

13. Time and place of despatch and receipt of electronic record. 

(1) Save as otherwise agreed to between the originator and the addressee, the dispatch of an electronic record occurs when it enters a computer resource outside the control of the originator.


(2) Save as otherwise agreed between the originator and the addressee, the time of receipt of  an electronic record shall be determined as follows, namely :—

(a) if the addressee has designated a computer resource for the purpose of receiving 
electronic records,— 
(i) receipt occurs at the time when the electronic, record enters he designated computer resource; or
(ii) if the electronic record is sent to a computer resource of the addressee that is 
not the designated computer resource, receipt occurs at the time when the electronic
record is retrieved by the addressee; 

(b) if the addressee has not designated a computer resource along with specified
timings, if any, receipt occurs when the electronic record enters the computer resource of the
addressee. 


(3) Save as otherwise agreed to between the originator and the addressee, an electronic record is deemed to be dispatched at the place where the originator has his place of business, and is
deemed to be received at the place where the addressee has his place of business. 


(4) The provisions of sub-section (2) shall apply notwithstanding that the place where the computer resource is located may be different from the place where the electronic record is
deemed to have been received under sub-section (3). 


(5) For the purposes of this section, — 

(a) if the originator or the addressee has more than one place of business, the principal place of business, shall be the place of business; 

(b) if the originator or the addressee does not have a place of business, his usual place of residence shall be deemed to be the place of business; 

(c) "usual place of residence", in relation to a body corporate, means the place where it is registered. 

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                                     CHAPTER III
              ELECTRONIC GOVERNANCE 

4. Legal recognition of electronic records.

 Where any law provides that information or any other matter shall be in writing or 
in the typewritten or printed form, then, notwithstanding anything contained in such law,
such requirement shall be deemed to have been satisfied if such information or matter
is—
(a) rendered or made available in an electronic form; and

(b) accessible so as to be usable for a subsequent reference.

5. Legal recognition of digital signatures. 

Where any law provides that information or any other matter shall be authenticated
by affixing the signature or any document shall be signed or bear the signature of any
person (hen, notwithstanding anything contained in such law, such requirement shall be
deemed to have been satisfied, if such information or matter is authenticated by means of
digital signature affixed in such manner as may be prescribed by the Central Government.

Explanation.—
For the purposes of this section, "signed", with its grammatical
variations and cognate expressions, shall, with reference to a person, mean affixing of his
hand written signature or any mark on any document and the expression "signature" shall
be construed accordingly.

6. Use of electronic records and digital signatures in Government and its agencies. 

(1) Where any law provides for—


(a) the filing of any form. application or any other document with any office,
authority, body or agency owned or controlled by the appropriate Government in a
particular manner;

(b) the issue or grant of any licence, permit, sanction or approval by whatever
name called in a particular manner;

(c) the receipt or payment of money in a particular manner,
then, notwithstanding anything contained in any other law for the time being in force, such requirement shall be deemed to have been satisfied if such filing, issue, grant, receipt or
payment, as the case may be, is effected by means of such electronic form as may be prescribed by the appropriate Government.


(2) The appropriate Government may, for the purposes of sub-section (1), by rules,
prescribe—

(a) the manner and format in which such electronic records shall be filed,created or issued;

(b) the manner or method of payment of any fee or charges for filing, creation or issue any electronic record under clause(a).

7. Retention of  electronic records. 

(1) Where any law provides that documents, records or information shall be retained 
for any specific period, then, that requirement shall be deemed to have been satisfied if such
documents, records or information are retained in the electronic form, if—

(a) the information contained therein remains accessible so as to be usable for a subsequent reference;

(b) the electronic record is retained in the format in which it was originally generated, sent or received or in a format which can be demonstrated to represent accurately the information originally generated, sent or received;

(c) the details which will facilitate the identification of the origin, destination,date and time of despatch or receipt of such electronic record are available in the
electronic record:

Provided that this clause does not apply to any information which is automatically generated solely for the purpose of enabling an electronic record to be
despatched or received.


(2) Nothing in this section shall apply to any law that expressly provides for the retention of documents, records or information in the form of electronic records.

8.  Publication of rule, regulation, etc., in Electronic Gazette. 

Where any law provides that any rule, regulation, order, bye-law, notification or any other matter shall be published in the Official Gazette, then, such requirement shall
be deemed to have been satisfied if such rule, regulation, order, bye-law, notification or any other matter is published in the Official Gazette or Electronic Gazette:

Provided that where any rule, regulation, order, bye-law, notification or any other matter is published in the Official Gazette or Electronic Gazette, the date of publication
shall be deemed to be the date of the Gazette which was first published in any form.

9.  Sections 6,7 and 8 not to confer right to insist document should be accepted in electronic form.  

Nothing contained in sections 6, 7 and 8 shall confer a right upon any person to insist that any Ministry or Department of the Central Government or the State Government or any authority or body established by or under any law or controlled or funded by the Central or State Government should accept, issue, create, retain and preserve any document in the form of electronic records or effect any monetary transaction in the electronic form.

10. Power to make rules by Central Government in respect of digital signature. 

The Central Government may, for the purposes of this Act, by rules, prescribe—

(a) the type of digital signature;

(b) the manner and format in which the digital signature shall be affixed;

(c) the manner or procedure which facilitates identification of the person affixing the digital signature;

(d) control processes and procedures to ensure adequate integrity, security and confidentiality of electronic records or payments; and

(e) any other matter which is necessary to give legal effect to digital signatures.  

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