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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Information Technology

Nimbus Trust Services is a Certifying Authority. The Controller issues an order specifying the form and manner in which Nimbus must maintain its accounts. Is this within the Controller's functions under the IT Act, 2000?

Yes. Section 18(h) empowers the Controller to specify the form and manner in which accounts are to be maintained by Certifying Authorities. The power belongs to the Controller and does not depend on the Companies Act, a Central Government order or auditor consent.

  1. ANo, accounts of Certifying Authorities are regulated only by the Companies Act
  2. BYes, the Controller may specify the form and manner in which accounts shall be maintained by Certifying AuthoritiesCorrect
  3. CNo, only the Central Government may specify account formats, not the Controller
  4. DYes, but only after the Certifying Authority's auditors consent to the format

Explanation

Section 18(h) lists specifying the form and manner in which accounts shall be maintained by Certifying Authorities among the Controller's functions. No consent of auditors is required, and the power is not confined to the Central Government.

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