CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Data Governance
A company secretary is asked who lays down the procedure and safeguards that an authorised agency must follow while monitoring and collecting traffic data. What is the correct position under the IT Act, 2000?
The procedure and safeguards are those prescribed by rules. Section 69B(3) says they shall be as may be prescribed, and Section 87(2)(za) empowers the Central Government to make rules on this matter. Intermediaries, the agency itself or company articles do not decide them.
- ASuch procedure and safeguards are as may be prescribed, under the rule-making power of the Central GovernmentCorrect
- BEach intermediary frames its own procedure and safeguards
- CThe agency decides the procedure at its discretion without any rules
- DThe procedure is fixed by the company's articles of association
Explanation
Section 69B(3) states that the procedure and safeguards shall be such as may be prescribed. Section 87(2)(za) lists this among the matters on which the Central Government may make rules, and such rules are laid before Parliament under Section 87(3).
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