He said, yes, there is a need for a self regulation or law should be made by the parliament.
further said, as far the security laws are concerned, the government
has already come out with the security laws amendments and certain
power are being given it to market regulator but million dollar
question arises that how safely those powers are used?
Foreign companies and e-commerce players have been avoiding compliance with Indian laws for long by hiding behind the conflict of laws in cyberspace. Most of its provisions have been brought into force recently to streamline the corporate culture of India. As a result, the directors' liability under the companies Act, 2013 has significantly increased, added Malhotra.
It is also possible that India may open online retail and e-commerce sector. However, it would come with the compliance requirements that various e-commerce stakeholders and foreign companies have been ignoring so far. This is a significant indication as many retail outlets and entrepreneurs have to decide their policies and strategies accordingly, added the Secretary.
The new company law regulatory framework prescribes management and inspection of documents in electronic form, electronic voting, and electronic notices etc. that require a techno legal compliance on the part of Indian companies.
He also said, "All subsidiary/joint ventures companies in India, especially those dealing in Information Technology and online environment, must mandatorily establish a server in India."
There have been instances of security breaches and data leakages in high profile Indian companies, notified the Information Technology Rules, 2011. The rules have imposed additional requirements on commercial and business entities in India relating to the collection and disclosure of sensitive personal data or information which have some similarities with the Data Protection Detective, added Malhotra.
the formulation of the proposed cyber security breach disclosure
norms of India and possible cyber security laws in India, the Indian
companies and their directors would find themselves in a legal fix.
The powers of Serious Frauds Investigation Office (SFIO) have also
been significantly increased by the Companies Act 2013", said