(1)

The following persons may apply for grant of a licence to issue Digital Signature Certificates, namely:-

(a) an individual, being a citizen of India and having a capital of five crores of rupees or more in his business or profession;

(b) a company having-

(i) unless such a company acquires or has its own net worth of not less than fifty crores of rupees;

(ii) without prior approval of the Controller;

(c) a firm having-

(i) capital subscribed by all partners of not less than five crores of rupees; and

(ii) net worth of not less than fifty crores of rupees:

(i) unless such firm has acquired or has its own net worth of not less than fifty crores of rupees;

(ii) without prior approval of the Controller;

(d) Central Government or a State Government or any of the Ministries or Departments, Agencies or Authorities of such Governments.

(i) "company " shall have the meaning assigned to it in clause 17 of section 2 of the Income-tax Act, 1961 (43 of 1961);

(ii) "firm " , "partner " and "partnership " shall have the meanings respectively assigned to them in the Indian Partnership Act, 1932 (9 of 1932), but the expression "partner " shall also include any person who, being a minor, has been admitted to the benefits of partnership;

(iii) "foreign company " shall have the meaning assigned to it in clause (23-A) of section 2 of the Income-tax Act, 1961 (43 of 1961);

(iv) "net worth " shall have the meaning assigned to it in clause (ga) of sub-section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986);

(v) "Non-resident " shall have the meaning assigned to it as in clause (26) of section 2 of the Income-tax Act, 1961 (43 of 1961).

(2)

The applicant being an individual, or a company, or a firm under sub-rule (1), shall [furnish a performance bond in the form of a banker's guarantee] [ Substituted by G.S.R. 902(E), dated 21.11.2003, for " submit a performance bond or furnish a banker's guarantee " (w.e.f. 27.11.2003).] from a scheduled bank in favour of the Controller in such form and in such manner as may be approved by the Controller for an amount of not less than [fifty lakhs] [ Substituted by G.S.R. 902(E), dated 21.11.2003, for " five crores " (w.e.f. 27.11.2003).] of rupees and the [performance bond in the form of banker's guarantee] [ Substituted by G.S.R. 902(E), dated 21.11.2003, for " performance bond or banker's guarantee " (w.e.f. 27.11.2003).] shall remain valid for a period of six years from the date of its submission:

Provided that the company and firm referred to in the second proviso to clause (b) and the second proviso to clause (c) of sub-rule (1) shall [furnish a performance bond in the form of a banker's guarantee] [Substituted by G.S.R. 902(E), dated 21.11.2003, for " submit a performance bond or furnish a banker's guarantee " (w.e.f. 27.11.2003). ] for [one crore] [Substituted by G.S.R. 902(E), dated 21.11.2003, for " ten crores " (w.e.f. 27.11.2003). ] of rupees:

Provided further that nothing in the first proviso shall apply to the company or firm after it has acquired or has its net worth of fifty crores of rupees.

(3)

Without prejudice to any penalty which may be imposed or prosecution may be initiated for any offence under the Act or any other law for the time being in force, the [performance bond in the form of banker's guarantee] [Substituted by G.S.R. 902(E), dated 21.11.2003, for " performance bond or banker's guarantee " (w.e.f. 27.11.2003). ] may be invoked-

(a) when the Controller has suspended the licence under sub-section (2) of section 25 of the Act; or

(b) for payment of an offer of compensation made by the Controller; or

(c) for payment of liabilities and rectification costs attributed to the negligence of the Certifying Authority, its officers or employees; or

(d) for payment of the costs incurred in the discontinuation or transfer of operations of the licensed Certifying Authority, if the Certifying Authority's licence or operation is discontinued; or

(e) any other default made by the Certifying Authority in complying with the provisions of the Act or rules made thereunder.