Page 83 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework

Notes (c) the receipt or payment of money in a particular manner, then, 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.

Did u know? The Delhi High Court restrained an IT company from using “bisleri.com” as
a domain name for its website, following a suit by Aqua Minerals Ltd – the makers of the
Bisleri brand of mineral water.

4.8 Secure Electronic Records and Secure Digital Signatures
[Secs.14 to 16]

Secure Electronic Record (Sec.14)

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 verifi cation.
Secure Digital Signature (Sec.15)

If, by application of a security procedure agreed to by the parties concerned, it can be verifi ed
that a digital signature, at the time it was affi xed, was – (a) unique to the subscriber affi xing 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.

Security Procedure (Sec.16)

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 transaction 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.

4.9 Digital Signature Certificates [Secs. 35 to 39]

Certifying Authority to issue Digital Signature Certifi cate (Sec.35)

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. Such an

application is to accompany such fee not exceeding ` 25000 as may be prescribed by the Central
Government, to be paid to the Certifying Authority.

Representations upon Issuance of Digital Signature Certifi cate (Sec.36)

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

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