Page 289 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 14.4 Secure Electronic Records and Secure Digital Signatures

To keep the users of electronic data away from the threats of unsafe online and offline data
ruining, measures mentioned below can help the users for such purposes.

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.
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-
 unique to the subscriber affixing it.

 capable of identifying such subscriber.
 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

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-

 The nature of the transaction.
 The level of sophistication of the parties with reference to their technological capacity.
 The volume of similar transactions engaged in by other parties.
 The availability of alternatives offered to but rejected by any party.

 The cost of alternative procedures, and
 The procedures in general use for similar types of transactions or communications.

Task What is the security procedure under IT Act, 2000?
14.5 Regulation of Certifying Authorities

Appointment of Controller and other Officers

 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.

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