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CMA Foundation · Fundamentals of Business Laws and Business Communication · E-Contracts and E-Signature - Meanings and Requirements

Under Section 21 of the Information Technology Act, 2000, which statement about a licence to issue electronic signature Certificates is correct?

A licence to issue electronic signature Certificates is valid for the period prescribed by the Central Government. It is neither transferable nor heritable, and it is subject to conditions specified by regulations. The applicant must also meet prescribed requirements on qualification, expertise, manpower, finances and infrastructure.

  1. AIt may be transferred to another person with the Controller's oral consent
  2. BIt is valid for such period as may be prescribed by the Central GovernmentCorrect
  3. CIt is heritable by the legal heirs of the licence holder
  4. DIt is issued to any applicant without any requirements regarding infrastructure

Explanation

Section 21(3) states that the licence is valid for the period prescribed by the Central Government, is not transferable or heritable, and is subject to conditions specified by regulations. Section 21(2) also requires the applicant to meet qualification, expertise, manpower, financial and infrastructure requirements. Hence only the validity-period statement is correct.

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