chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Local Administration Act, 1971

Provided that nothing written in this sub-section shall be deemed to prevent the amended by the Third Amendment. Chief District Officer from ordering to shoot immediately upon sight any person or group breaking the curfew and exhibiting violent tendencies.

(5) omitted by the Third Amendment. The duration of the curfew imposed by order of the Chief District Officer shall be progressively reduced by the same officer according to the situation, and once the situation normalizes, the curfew shall be completely lifted.

amended by the Third Amendment.(6) After the Chief District Officer issues a curfew order, he shall immediately inform the amended by the Fourth Amendment. Ministry thereof.

added by the Second Amendment.6b. Power to Declare Riot-Affected Area: (1) If, in any area, a situation arises where a procession, crowd, or organized group engages in violent or destructive acts such as looting, setting fire to houses or shops, or damaging public property, with or without weapons, and if it appears that such acts cannot be prevented by ordinary police action, the omitted by the Third Amendment. Chief District Officer may declare that area as a riot-affected area. After declaring a riot-affected area, to restore peace and order in that area, the amended by the Third Amendment. Chief District Officer may take any or all of the following actions: –

(a) Arrest without warrant suspicious persons in such area and detain them under the Public Security Act, 2046 amended by the Third Amendment.;

(b) Shoot on sight any person engaged in looting, setting fire to houses or shops, damaging public property, or committing other types of violent or destructive acts in such area;

(c) Prohibit any type of gathering, procession, assembly, meeting, or demonstration, or the posting or writing of propaganda materials such as posters or pamphlets in such area;

(d) Arrange for the supply of essential commodities in such area and control the transport, storage, sale, and distribution of such commodities;

(e) Close educational institutions and any other institutions, entertainment centers, and offices in such area;

(f) Prohibit strikes in any essential service under the Essential Services Operation Act, 2014 in such area;

(g) Prohibit the assembly of five or more persons in such area;

(h) Impose curfew in such area;

(i) Seek the assistance of the Nepali Army if necessary for the above actions.

(2) If there is a suspicion that illegal arms and ammunition are kept in a riot-affected area, by order of the amended by the Third Amendment.
Local Administration Act, 1971

Chief District Officer, police personnel of the rank of at least Police Assistant Inspector may conduct a search of the house, shop, compound, or godown of any person in such area without prior notice.

amended by the Third Amendment.(3) When declaring a riot-affected area under sub-section (1), the Chief District Officer may declare it for a maximum period of one month at a time. If it is necessary to extend that period, the Chief District Officer may, with the approval of the Government of Nepal, Ministry, extend the period for up to an additional three months.

amended by the Third Amendment.(4) The Chief District Officer shall immediately inform the amended by the Fourth Amendment. Ministry of the declaration of a riot-affected area.

(5) Any person violating clause (e) or (g) of sub-section (1) or obstructing a search under sub-section (2) may be punished by the amended by the Third Amendment. Chief District Officer, following a summary procedure deemed appropriate, with imprisonment for up to three months or a fine of up to three thousand rupees, or both, and an appeal against the order of such punishment shall lie to the amended by the Act to Amend Some Nepal Acts, 2072. District Court.

added by the Act to Amend Some Nepal Acts, 2064.6c. Not to Obstruct Public Service or Road or Damage Any House or Vehicle: (1) No person shall do or cause to be done the following acts: –

(a) To obstruct the smooth operation of a public road specified by the Government of Nepal by publishing a notice in the Nepal Gazette by way of wheel jam or any other means;

(b) To damage, set fire to, loot government, public, or private vehicles, houses, or property, or to forcibly enter such vehicles, houses, or land, or to take possession of such vehicles, houses, or property; and

(c) To obstruct government and public bodies and educational institutions by acts such as locking them.

(2) If any person commits any act under sub-section (1), the Chief District Officer may, considering the nature of the offence, punish such person with a fine of up to ten thousand rupees or imprisonment for up to six months, or both, and may also recover the amount of loss or damage caused by him from him and impose a fine equivalent to the amount of loss or damage.

(3) While taking action under this section, the Chief District Officer shall follow the procedure under the Summary Procedure Act, 2028.

(4) Any person dissatisfied with the punishment given by the Chief District Officer under sub-section (2) may appeal to the amended by the Act to Amend Some Nepal Acts, 2072.
Local Administration Act, 1971

District Court within thirty-five days.

amended by the Third Amendment.7. Powers and Duties Relating to Police Personnel: (1) The Chief District Officer shall conduct necessary inquiries as to whether the District Police Office, Area Police Office, and Police Posts are in proper condition, and whether police personnel and officers and constables have been acting in accordance with the law, and shall take the following actions in that regard: –

(a) Inspection of the District Police Office, Area Police Office, and Police Posts shall be mandatory at least once a year. A report thereof shall be sent to the amended by the Fourth Amendment. Ministry.

(b) Reports on the honesty, integrity, and performance of police officers shall be sent to the amended by the Fourth Amendment. Ministry twice a year, at the end of Poush and the end of Ashadh.

(c) If it appears necessary to make arrangements for any police-related work in the district, the Chief District Officer shall submit his opinion in writing to the amended by the Fourth Amendment. Ministry.

(d) If any complaint is made that a police employee has acted contrary to law while performing his duty, necessary investigation shall be conducted, and a report with recommendations and opinion shall be submitted to the amended by the Fourth Amendment. Ministry for necessary action. 8. Powers Relating to Cases and Appeals: (1) The Chief District Officer shall have the power to initiate proceedings and decide the following cases: –

amended by the Third Amendment.(a) Cases of simple theft involving an amount of up to five hundred rupees;

(b) Cases of pickpocketing;

(c) added by the Black Marketing and Some Other Social Offences and Punishment Act, 2032.

(d) Cases of cheating by using false weights and measures;

(e) Cases relating to killing of female animals except at places of deities traditionally established.

(2) In cases under sub-section (1) that are not of a recurring nature, the decision of the Chief District Officer sentencing a fine of up to amended by the Third Amendment. five hundred rupees shall be final, and no appeal shall lie against his decision. In cases where a fine exceeding amended by the Act to Amend Some Nepal Acts, 2072. five hundred rupees is imposed or in cases of a recurring nature, an appeal against his decision shall lie to the amended by the Act to Amend Some Nepal Acts, 2072. District Court within thirty-five days.

(3) If, in connection with complaints received by him, the Chief District Officer finds it necessary to have the property of any woman or minor kept safely, he may, with the assistance of the amended by the Third Amendment.
Local Administration Act, 1971

District Court within thirty-five days.

(3) If, in connection with complaints received by him, the Chief District Officer finds it necessary to have the property of any woman or minor kept safely, he may, with the assistance of the amended by the Third Amendment. Municipality or amended by the Act to Amend Some Nepal Acts, 2072. Rural Municipality, cause such property to be kept safely in the custody of any respectable person of the district or a government office.

(4) amended by the Judicial Administration Reform (Fourth Amendment) Act, 2043.

(5) amended by the Judicial Administration Reform (Fourth Amendment) Act, 2043.

(6) omitted by the Third Amendment. When the Chief District Officer conducts proceedings and decides cases under this Act or prevailing Nepal law, he shall also mention the Act under which the proceedings and decision are being made and shall conduct proceedings and decide within the time limit prescribed by prevailing Nepal law. 9. Other Functions, Duties, and Powers of the Chief District Officer: (1) The Chief District Officer may cause any person who, after consuming intoxicants, sits in a public place and talks or walks carelessly or behaves disorderly, to be arrested and detained until he is sober, and after he becomes sober, may give him an oral admonition, and if he repeats the same offence, may fine him each time up to a maximum of amended by the Fourth Amendment. one thousand rupees.

amended by the Act to Amend, Consolidate, Adjust, and Repeal Some Nepal Laws, 2074.(2) If unclaimed goods are found, and upon inquiry the Chief District Officer finds that the goods belong to a person liable to pay any amount to the Government of Nepal, he shall sell as much of the goods as is required to realize the amount and deposit it into the government treasury.

added by the Act to Amend, Consolidate, Adjust, and Repeal Some Nepal Laws, 2074.(2a) If the goods under sub-section (2) belong to a creditor, they shall be given to the creditor; if the goods are other than those belonging to a creditor and the owner is found, they shall be given to the owner; and if the owner is not found, they shall be given to the person on whose premises they were found.
Local Administration Act, 1971

Provided that if any object is found in a public place, it shall be handed over to the amended by the Act to Amend Some Nepal Acts, 2072. local level.

added by the Act to Amend, Consolidate, Adjust, and Repeal Some Nepal Laws, 2074.(2b) When goods are given under sub-section (2a), if the finder is entitled to receive the goods, the value of such goods shall be determined and twenty percent thereof shall be deposited in the government account; and if the finder is not entitled to receive the goods, the person receiving the goods shall give ten percent to the finder.

(3) If any government employee forces any person to work without remuneration for government or personal household work, the Chief District Officer may initiate proceedings against him under prevailing Nepal law or send a written communication to the concerned departmental head for departmental action under the Civil Service Rules.

(4) If a Municipality or amended by the Act to Amend Some Nepal Acts, 2072. Rural Municipality reports that tigers, leopards, or other wild animals are causing trouble in any place within the district, the Chief District Officer shall have such animal killed and hand over the skin and other body parts to the concerned forest office in accordance with the directives given by the amended by the Act to Amend Some Nepal Acts, 2075. Ministry of Forests and Environment of the Government of Nepal.

(5) If any person makes an illegal profit by taking unfair advantage while selling any goods, the Chief District Officer may, considering the quantity and price of the goods bought and sold, punish the seller with a fine of up to amended by the Third Amendment. one thousand rupees or imprisonment for up to three months, or both. Any person dissatisfied with the punishment given by the Chief District Officer may appeal to the amended by the Act to Amend Some Nepal Acts, 2072. District Court within thirty-five days.

(6) The Chief District Officer shall prepare and maintain a register of public taps, wells, ponds, water spouts, rest houses, public shelters, alms houses, temples, caves, bridges, etc. within his district, and if they are about to fall into disrepair or be damaged, he shall have them repaired by the owner, heir, amended by the Third Amendment. Municipality or amended by the Act to Amend Some Nepal Acts, 2072. Rural Municipality, or the Guthi Corporation.

added by the Some Nepal Acts (Amendment) Act, 2043.9(6a) No person shall construct a house on government land amended by the Act to Amend, Consolidate, Adjust, and Repeal Some Nepal Laws, 2074. public land or community land without having established his right.
Local Administration Act, 1971

Rural Municipality, or the Guthi Corporation.

added by the Some Nepal Acts (Amendment) Act, 2043.9(6a) No person shall construct a house on government land amended by the Act to Amend, Consolidate, Adjust, and Repeal Some Nepal Laws, 2074. public land or community land without having established his right. If any person constructs or attempts to construct a house on such land, the Chief District Officer may issue an order prohibiting such person from constructing the house. If the house has been constructed or is under construction, the order may also require the person to demolish and remove the house within one month. If the house is not demolished within that period, the Chief District Officer may fine the person who constructed the house up to five thousand rupees and demolish the house, and may also recover the expenses incurred in demolishing the house from the concerned person.

omitted by the Act to Amend, Consolidate, Adjust, and Repeal Some Nepal Laws, 2074.

amended by the Act to Amend, Consolidate, Adjust, and Repeal Some Nepal Laws, 2074.(7) If a person who has lost mental balance is left uncontrolled and at large, and it appears that such person poses a danger to any person or society, the Chief District Officer shall entrust him to his guardian or, if there is a respectable person, to such guardian or respectable person; and if there is no guardian or respectable person, he shall have him placed in the nearest hospital and arrange for medical treatment.

(8) If any person applies to the Chief District Officer for a certificate of relationship, the Chief District Officer may, after inquiry and if found correct, issue the necessary certificate upon collecting a fee of five rupees.

amended by the Third Amendment.(9) Any person dissatisfied with an order for action taken by the Chief District Officer in exercise of the power under sub-sections (1) and (7) may complain to the amended by the Act to Amend Some Nepal Acts, 2072. District Court within thirty-five days of such order.

added by the First Amendment.(10) Except in circumstances where religious worship traditionally practiced must be continued, if any person slaughters an animal on the day of Buddha Jayanti, Krishna Janmashtami, Maha Shivaratri, Ram Navami, or Ekadashi festivals, or at a religious site specified by the Government of Nepal by publishing a notice in the Nepal Gazette prohibiting animal slaughter, the Chief District Officer may fine him up to amended by the Third Amendment. five hundred rupees, and no appeal shall lie against such order of fine by the Chief District Officer.

added by the Second Amendment.(11) amended by the Third Amendment.
Local Administration Act, 1971

Within a Municipality area, no person shall leave cattle stray on the road, and if any person leaves cattle stray on the road and the concerned amended by the Third Amendment. Municipality fails to catch such stray cattle, the Chief District Officer shall cause such cattle to be caught and sold by auction in such manner as he deems appropriate, and the proceeds from the auction shall be deposited into the amended by the Act to Amend Some Nepal Acts, 2072. Rural Municipality or Municipality fund. If no one claims the cattle at the auction, the Chief District Officer may transfer such cattle without consideration to any person other than the owner of the cattle. Explanation: For the purpose of this sub-section: –

(1) "Cattle" means ox, buffalo, bull, horse, sheep, and goat.

(2) "Stray cattle" means cattle left on the road by the owner without a herder or any other person.

added by the Second Amendment.(12) The owner of cattle violating sub-section (11) shall, by order of the Chief District Officer, be liable to imprisonment for up to amended by the Act to Amend, Consolidate, Adjust, and Repeal Some Nepal Laws, 2074. three months or a fine of up to five thousand rupees, and an appeal against the order of such punishment shall lie to the amended by the Act to Amend Some Nepal Acts, 2072. District Court. Provided that even if the owner of stray cattle is acquitted by the appellate court, the judgment of that court shall not be deemed to adversely affect the auction or transfer of the stray cattle already made under sub-section (11). 10. repealed by the Some Nepal Acts (Amendment) Act, 2041.

added by the Some Nepal Acts (Amendment) Act, 2043.10a. Record of Public Property: (1) The District Administration Office shall prepare and maintain a record of public land, rest houses, shelters, alms houses, parks, ponds, wells, pastures, thoroughfares, etc., as shown by survey maps or by official documents such as Lal Mohar, Khadga Nishana, copper plate, stone inscription, or similar authoritative deeds, and shall provide a copy thereof to the Land Revenue Office and the amended by the Act to Amend Some Nepal Acts, 2072. Rural Municipality or Municipality Office.

(2) No person shall cultivate or authorize cultivation of the public land, rest houses,
Electronic Transactions Act, 2006

Electronic Transactions Act, 2063

Certification and Publication Date
2063.08.22

Amending Acts

1. Act to Amend Some Nepal Acts to Maintain Gender Equality and End Gender-Based Violence, 2072 2072.06.14
2. Act to Amend, Consolidate, Adjust and Repeal Some Nepal Laws, 2072 2074.06.30
3. Act to Amend Some Nepal Acts, 2082 2082.04.14

Act No. 27 of the year 2063

An Act Made to Provide for Electronic Transactions

Preamble: Whereas, it is desirable to make transactions through the medium of electronic data interchange or any other electronic communication reliable and secure, to provide for recognition, authentication, integrity and reliability of the system for creation, production, processing, storage, transmission and communication of electronic records and to make legal provisions for providing authentication and regulation, and to make legal arrangements to control the unauthorized use of electronic records or the unlawful alteration of such records,

Now, therefore, the House of Representatives has enacted this Act in the first year of the proclamation of the House of Representatives, 2063. Chapter-1
Preliminary

1. Short Title, Extent and Commencement: (1) This Act may be called the "Electronic Transactions Act, 2063."

(2) This Act shall be deemed to have commenced from the 24th day of the month of Bhadra of the year 2063.

(3) This Act shall apply throughout the State of Nepal, and this Act shall also apply to any person, wherever residing, who commits an offense in violation of this Act. 2. Definitions: Unless the subject or context otherwise requires, in this Act,-

(a) "Asymmetric Crypto System" means a system that generates a secure pair of keys, consisting of a private key for creating a digital signature and a public key for verifying a digital signature.

(b) "License" means a license obtained pursuant to Sub-section (3) of Section 18.

(c) "Originator" means a person who generates, stores or transmits an electronic record, and said term also denotes a person who instructs another person to do such act.
Electronic Transactions Act, 2006

Provided that said term shall not denote an intermediary.

(v) "Electronic Record" means data, record, image or sound created, transmitted, received or stored through any medium in electronic form.

(w) "Electronic Form" means the form of information created, transmitted, received or stored through any magnetic, optical, computer memory or other similar device.

(x) "Public Key" means one key of a key pair used to verify a digital signature.

(y) "Information" means data, text, images, sound, codes, computer programs, software and computer data bases.

(z) "Information System" means a system for creating, producing, transmitting, receiving, storing, displaying or otherwise processing information.

(aa) "Software" means any specific part of a computer system, such as system software and application software, capable of operating computer hardware.

(ab) "Computer Content" means computer resources, information used by an organization in its business, materials such as software prepared or purchased by such organization, and technology such as hardware and computer networks.

(ac) "Government Agency" means a Ministry, Secretariat, Department or office under it of the Government of Nepal, a Constitutional body or office under it, a Court or Tribunal, or an office of the Nepali Army, and said term also denotes other offices of a similar nature.

(ad) "Public Body" means the following bodies:

(1) Companies, banks or committees wholly or partially owned or controlled by the Government of Nepal, or Commissions, institutions, authorities, corporations, foundations, boards, centers, councils and other organized institutions of a similar nature established by the Government of Nepal pursuant to the prevailing law,
(2) Universities, schools, research centers and other similar academic or educational institutions operated by the Government of Nepal or receiving full or partial grants from the Government of Nepal,
(3) Local bodies constituted pursuant to the Local Self-Governance Act, 2055,
(4) Institutions operating on loans, grants or guarantees of the Government of Nepal,
(5) Institutions wholly or partially owned or controlled by, or receiving grants from, institutions listed in sub-clauses (1), (2), (3) or (4),
(6) Other institutions designated as public bodies by the Government of Nepal by publishing a notice in the Nepal Gazette.

(ae) "Prescribed" or "as prescribed" means prescribed or as prescribed in the rules made under this Act. Chapter-2

Provisions Relating to Electronic Records and Digital Signatures

3. Authentication of Electronic Records: (1) Subject to this section, any subscriber may authenticate an electronic record by affixing his or her digital signature.

(2) When performing the act of authenticating an electronic record pursuant to Sub-section (1), it shall be necessary that the act of transferring such electronic record to another electronic record is done through the use of an asymmetric crypto system and a hash function.
Electronic Transactions Act, 2006

Explanation: For the purpose of this section, "hash function" means a function which maps or transforms a string of bits into a smaller set (hash result) such that:
- executing the algorithm on the same record as input each time produces the same hash result;
- it is computationally infeasible to derive or reconstruct the original record from the hash result produced by the algorithm; and
- it is computationally infeasible to find two records that produce the same hash result using the algorithm.

(3) Any person may verify an electronic record using the subscriber's public key. 4. Legal Recognition of Electronic Records: Where any provision of the prevailing law requires that any information, document, record or any other matter be kept in written or printed form or typed form, if such information, document, record or matter is kept in the form of an electronic record by completing the procedure mentioned in this Act or the rules made under this Act, then such electronic record shall also have legal validity. 5. Legal Recognition of Digital Signatures: Where any provision of the prevailing law requires that any information, document, record or any other matter be authenticated by signature or that any document bear the signature of any person, if such information, document, record or matter is authenticated by a digital signature by completing the procedure mentioned in this Act or the rules made under this Act, then such digital signature shall also have legal validity. 6. Requirement to Retain Electronic Records: Where any provision of the prevailing law requires that any information, document or record be retained for a specific period, if such information, document or record is retained in electronic form fulfilling the following conditions, such information, document or record shall have legal validity:

(a) if it is kept in an accessible state for subsequent reference,
(b) if it is retained in a format that can be displayed to be accurately reproduced as it was initially created, transmitted, received or stored,
(c) if details enabling the identification of the origin, destination, date and time of transmission or receipt are kept available. Provided that the provision of this clause shall not apply to any information automatically created for the purpose of transmitting or receiving a record. 7.
Electronic Transactions Act, 2006

Provided that the provision of this clause shall not apply to any information automatically created for the purpose of transmitting or receiving a record. 7. Electronic Record Satisfies the Requirement to Produce Original Record: Where the prevailing law requires that a record be produced or retained in its original form, such requirement shall be deemed satisfied by an electronic record if the following conditions are met:

(a) there exists a basis as prescribed to believe that the record has not been altered in any manner since the time it was first created in electronic form,
(b) where the record is required to be produced before any person, it is of a nature that can be clearly shown to that person before whom it is required to be produced. 8. Secure Electronic Record: If an electronic record created by adopting a security procedure as prescribed has been tested as prescribed to determine whether any tampering has been done to such record, then such electronic record shall be deemed a secure electronic record. 9. Secure Digital Signature: If a digital signature affixed to an electronic record has been tested and verified as prescribed by adopting a security procedure as prescribed, then such digital signature shall be deemed a secure digital signature. Chapter-3

Provisions Relating to Transmission, Receipt and Acceptance of Electronic Records

10. Attribution of Electronic Record: (1) An electronic record shall be attributed to an originator in any of the following circumstances:

(a) if the originator himself or herself transmitted such electronic record,
(b) if a person authorized on behalf of the originator to perform necessary acts in respect of such electronic record transmitted such electronic record,
(c) if such electronic record was transmitted from an information system programmed to operate automatically on behalf of the originator.

(2) In relation to an electronic record transmitted pursuant to Sub-section (1), if circumstances as prescribed exist, the recipient shall have the right to assume that any such electronic record belongs to a particular originator and act on that basis. 11.
Electronic Transactions Act, 2006

11. Procedure for Acknowledging Receipt of Electronic Record: (1) Where, at the time of sending an electronic record or before sending it, the originator has requested the recipient to send a notice or acknowledgment of receipt of such electronic record, or where the recipient and the originator have agreed that such a notice or acknowledgment be sent, the provisions of Sub-sections (2), (3) and (4) shall apply regarding the acknowledgment of receipt of such electronic record.

(2) Where the originator and the recipient have not agreed that the notice or acknowledgment of receipt be given in a specific format or by a specific method, such notice or acknowledgment may be given as follows:

(a) by means of automatic or any other kind of communication from the recipient,
(b) by any conduct of the recipient sufficient to indicate to the originator that the electronic record has been received.

(3) If the originator has stated that the electronic record shall be binding on him or her only upon receipt of a notice or acknowledgment of receipt of such electronic record from the recipient, the electronic record shall not be deemed sent by the originator until such notice or acknowledgment of receipt is received from the recipient.

(4) If the originator has not stated that the electronic record shall be binding on him or her only upon receipt of a notice or acknowledgment of receipt of such electronic record from the recipient, and if no time has been fixed or agreed upon between the originator and the recipient regarding the notice or acknowledgment of receipt, the originator must have received the notice or acknowledgment of receipt of such electronic record from the recipient within the time as prescribed. If the notice or acknowledgment of receipt of the electronic record is not received from the recipient, the electronic record shall not be deemed sent by the originator.

(5) Other procedures for acknowledging receipt of an electronic record shall be as prescribed. 12. Time and Place of Transmission and Receipt of Electronic Record: (1) Unless otherwise agreed between the originator and the recipient, the transmission of an electronic record shall be deemed to have occurred when it enters an information system outside the control of the originator.

(2) Unless otherwise agreed between the originator and the recipient, the time of receipt of an electronic record shall be determined as prescribed.

(3) Unless otherwise agreed between the originator and the recipient, an electronic record shall be deemed to be sent from the place of business of the originator and received at the place of business of the recipient.
Electronic Transactions Act, 2006

Explanation: For the purpose of this sub-section, "place of business" means,-

(a) if the originator or recipient has more than one place of business, the place of business most closely related to the relevant transaction,
(b) if the originator or recipient does not have a place of business, the place of residence of that person shall be deemed the place of business. Chapter-4

Provisions Relating to Controller and Certification Authority

13. Appointment of Controller and Other Employees: (1) The Government of Nepal may, by publishing a notice in the Nepal Gazette, designate or appoint any authorized employee of the Government of Nepal or any person possessing qualifications as prescribed to the post of Controller.

(2) The Government of Nepal may deploy or appoint as many Deputy Controllers and other employees as necessary to assist in the work to be performed by the Controller under this Act. Employees so deployed or appointed shall work under the direction and control of the Controller. 14. Functions, Duties and Powers of the Controller: The functions, duties and powers of the Controller shall be as follows:

(a) to grant licenses to Certification Authorities,
(b) to supervise and monitor the activities of Certification Authorities,
(c) to determine the standards to be maintained by Certification Authorities for verifying digital signatures,
(d) to determine the conditions to be followed by Certification Authorities while conducting their business,
(e) to determine the format of certificates and the subject matter to be included therein,
(f) to determine the procedures to be adopted by Certification Authorities when dealing with subscribers,
(g) to maintain records of information published by Certification Authorities under this Act and manage a computer data base accessible to the public and update such data base,
(h) to perform other functions as prescribed. 15. Requirement to Obtain a License: No person shall act as or engage in the business of a Certification Authority without obtaining a license under this Act. 16. Application for License: (1) Any interested person possessing qualifications as prescribed who wishes to act as a Certification Authority by issuing certificates under this Act shall submit an application to the Controller in the format as prescribed, accompanied by the fee as prescribed.

(2) An application submitted pursuant to Sub-section (1) shall be accompanied by the following documents:

(a) details relating to certification,
(b) documents confirming the identity and verification of the applicant,
(c) documents disclosing financial resources, manpower and other necessary facilities,
(d) other documents as prescribed.

(3) If the Controller deems necessary, he or she may request additional documents and details from the applicant to examine the suitability of the applicant to act as a Certification Authority.
Electronic Transactions Act, 2006

If such additional documents and details are requested, no action shall be taken on the application of the applicant until such documents and details are submitted. 17. Other Functions and Duties of Certification Authority: Other functions and duties of a Certification Authority, other than issuing, suspending or revoking certificates, shall be as prescribed. 18. Procedure for Granting License: (1) Upon receipt of an application pursuant to Section 16, the Controller shall, considering the qualifications and whether the applicant has financial and physical resources, manpower and other facilities as prescribed and also considering the documents and details submitted by the applicant, make a decision regarding granting or not granting the license within two months from the date of registration of the application and give notice thereof to the applicant.

(2) While making a decision regarding granting a license pursuant to Sub-section (1), the Controller may inspect the facilities, financial and physical resources available with the applicant.

(3) If the Controller decides to grant a license to the applicant pursuant to Sub-section (1), a license shall be granted to the applicant in the format as prescribed, specifying the validity period of the license and the conditions to be complied with by the applicant.

(4) Other procedures relating to granting a license shall be as prescribed. 19. Renewal of License: (1) A license obtained by a Certification Authority shall be renewed annually.

(2) A Certification Authority wishing to renew its license pursuant to Sub-section (1) shall submit an application to the Controller in the format as prescribed, accompanied by the renewal fee as prescribed, at least two months prior to the expiry of the validity period of the license.

(3) Upon receipt of an application for renewal pursuant to Sub-section (2), the Controller shall complete the procedure as prescribed regarding whether to renew or not renew the license and make a decision at least one month before the expiry of the validity period of the license.

(4) If the Controller decides not to renew the license, the applicant shall be given a reasonable opportunity to present his or her views in relation thereto. 20. Suspension of License: (1) If a Certification Authority has submitted documents or details and financial and physical resources before the Controller which are found to be different or false for obtaining the license, or fails to comply with the conditions to be followed while conducting business, or is found to have violated this Act or the rules made under this Act, the Controller may suspend the license of the Certification Authority pending investigation in relation thereto.
Electronic Transactions Act, 2006

Provided that, before suspending the license, the Certification Authority shall be given a reasonable opportunity to present its defense.

(2) Other procedures relating to suspension of license and provisions in relation thereto shall be as prescribed. 21. Revocation of License: (1) If, from an investigation carried out in the manner as prescribed in relation to the activities of a Certification Authority, any of the following matters are found to have occurred, the Controller may revoke the license issued under this Act at any time:

(a) if the Certification Authority has failed to comply with the duties required to be fulfilled under this Act or the rules made under this Act,
(b) if the Certification Authority is found to have submitted false or incorrect details and documents at the time of applying for the license or applying for renewal of the license,
(c) if the Certification Authority has conducted business in a manner that adversely affects the public interest or the national economy,
(d) if the Certification Authority has done any act that constitutes an offense under this Act or the rules made under this Act.

(2) Before revoking the license pursuant to Sub-section (1), the Controller shall give the Certification Authority a reasonable opportunity to present its defense.

(3) Other procedures relating to revocation of license shall be as prescribed. 22. Notice of Suspension or Revocation of License: (1) The Controller shall give written notice of the decision to suspend or revoke the license of a Certification Authority pursuant to Section 20 or 21 to such Certification Authority and shall also publish such notice in electronic form by keeping it in its computer data base.

(2) The Controller shall publish the notice of the decision to suspend or revoke the license in at least two national daily newspapers in the Nepali and English languages up to two times. Provided that, the failure to publish such notice shall not affect the decision made by the Controller to suspend or revoke the license pursuant to Section 20 or 21. 23. Recognition of Foreign Certification Authority: (1) The Controller may, with the prior approval of the Government of Nepal, by publishing a notice in the Nepal Gazette, recognize a Certification Authority that has obtained a license to issue certificates under the law of a foreign country, subject to compliance with conditions as prescribed. A foreign Certification Authority so recognized may issue certificates in the State of Nepal under this Act or the rules made under this Act.

(2) The procedure to be adopted while recognizing a foreign Certification Authority as mentioned in Sub-section (1) shall be as prescribed. 24.
Electronic Transactions Act, 2006

A foreign Certification Authority so recognized may issue certificates in the State of Nepal under this Act or the rules made under this Act.

(2) The procedure to be adopted while recognizing a foreign Certification Authority as mentioned in Sub-section (1) shall be as prescribed. 24. Controller May Issue Directions: The Controller may, from time to time, issue directions to require Certification Authorities to comply with the duties required to be fulfilled under this Act or the rules made under this Act regarding the issuance of certificates. It shall be the duty of the Certification Authority to comply with directions so issued. 25. Controller May Delegate Powers: The Controller may delegate all or some of the powers conferred upon him or her under this Act or the rules made under this Act to any authorized employee under him or her, so that such employee may exercise such powers to perform the work to be performed by the Controller. 26. Controller May Conduct Investigation: (1) If the Controller is satisfied that a Certification Authority or any other related person has failed to comply with this Act or the rules made under this Act, the Controller may, himself or herself or through any other authorized employee, conduct or cause to be conducted necessary investigation in relation thereto.

(2) It shall be the duty of the Certification Authority to cooperate in the investigation pursuant to Sub-section (1).

(3) The procedure to be adopted by the Controller or any other authorized employee in relation to investigations conducted pursuant to Sub-section (1) shall be as prescribed. 27. Performance Audit of Certification Authority: (1) The Controller may, each year, audit or cause to be audited the performance of a Certification Authority.

(2) For conducting a performance audit pursuant to Sub-section (1), the Controller may appoint a recognized auditor or computer expert who has specialized in computer security.

(3) The Controller shall keep the report of the performance audit conducted pursuant to Sub-section (1) in its computer data base and publish it in electronic form.

(4) The qualifications, remuneration and audit procedures of the auditor conducting the performance audit shall be as prescribed.

(5) The Controller shall determine the service level of the Certification Authority and publish notice thereof publicly for the information of the general public. 28.
Electronic Transactions Act, 2006

28. Controller's Access to Computers and Data: (1) If there is reasonable cause to suspect that any person has violated this Act or the rules made under this Act, the Controller shall have the right of access to any computer system, equipment, device, data, information system or any material connected to such system.

(2) For the purpose of Sub-section (1), the Controller may direct the owner or other responsible person of any computer system, equipment, device, data, information system or any material connected to such information system to provide technical or other assistance as he or she deems necessary.

(3) It shall be the duty of the concerned person to comply with the direction given pursuant to Sub-section (2). 29. Requirement to Maintain Records: (1) The Controller shall maintain records of all certificates issued under this Act.

(2) For the purpose of Sub-section (1), to ensure the confidentiality and security of digital signatures, the Controller shall perform the following functions:

(a) use a computer security system,
(b) implement security procedures to ensure the confidentiality and integrity of digital signatures,
(c) comply with standards as prescribed.

(3) The Controller shall maintain an updated computer data base incorporated in a computer system of all public keys.

(4) The Controller shall provide the public key to any person requesting the availability of the public key for the purpose of verifying a digital signature. Chapter-5

Provisions Relating to Digital Signatures and Certificates

30. Certification Authority May Issue Certificates: Only a Certification Authority that has obtained a license or recognition under this Act may issue digital signature certificates. 31. Application to Obtain Certificate: (1) Any person wishing to obtain a certificate shall submit an application to the Certification Authority in the format as prescribed, accompanied by the fee and details as prescribed.

(2) Upon receipt of an application pursuant to Sub-section (1), the Certification Authority shall complete the procedure as prescribed and make a decision regarding issuing or not issuing the certificate to the applicant within one month from the date of receipt of the application.

(3) If the Certification Authority decides to issue a certificate pursuant to Sub-section (2), it shall issue a certificate within seven days in the format as prescribed, containing details as prescribed, with its signature; and if it decides not to issue a certificate, it shall give notice to the applicant within seven days stating the reasons therefor. 32.
Electronic Transactions Act, 2006

32. Suspension of Certificate: (1) A Certification Authority may suspend a certificate in the following circumstances:

(a) if the subscriber who obtained the certificate or a person authorized on behalf of such subscriber requests the suspension of such certificate,
(b) if it is necessary to suspend the certificate in circumstances contrary to the public interest as prescribed,
(c) if, due to non-compliance with the provisions of this Act or the rules made under this Act at the time of issuing the certificate, it appears that there may be significant harm to persons relying on such certificate, and the Controller directs the suspension of such certificate stating the reasons therefor.

(2) The grounds and procedures for suspension and lifting of suspension of a certificate shall be as prescribed. 33. Revocation of Certificate: (1) The Controller or a Certification Authority may revoke a certificate in the following circumstances:

(a) if the subscriber who obtained the certificate or a person authorized on behalf of such subscriber requests the revocation of such certificate,
(b) if it is necessary to revoke the certificate in circumstances contrary to the public interest as prescribed,
(c) if the subscriber dies,
(d) if the subscriber is a company or organized institution, and such organized institution or company is insolvent, dissolved or liquidated under the prevailing law,
(e) if it is proven that any condition required to be fulfilled at the time of issuing the certificate was not fulfilled,
(f) if any fundamental fact stated in the certificate is proven false,
(g) if the key or security system used to create the key pair is altered or modified in a way that materially affects the reliability of the certificate.

(2) The procedure to be followed by the Controller or Certification Authority when revoking a certificate shall be as prescribed. 34. Notice of Suspension or Revocation: (1) If a certificate is suspended or revoked pursuant to Section 32 or 33, the Certification Authority or the Controller suspending or revoking the certificate shall keep a record thereof and publish notice thereof publicly.

(2) It shall be the duty of the Certification Authority or, as the case may be, the Controller to give notice of the suspension or revocation pursuant to Sub-section (1) to the subscriber as soon as possible. Chapter-6

Functions, Duties and Rights of Subscribers

35.
Electronic Transactions Act, 2006

Chapter-6

Functions, Duties and Rights of Subscribers

35. Creation of Key Pair: (1) If it is required that the subscriber himself or herself create the key pair containing the public key to be listed in the certificate issued by the Certification Authority and accepted by the subscriber, the subscriber shall use a secure asymmetric crypto system when creating such key pair.

(2) Notwithstanding anything written in Sub-section (1), if there is any agreement between the subscriber and the Certification Authority regarding the security system to be used for creating the key pair, or if the Certification Authority has approved a specific system, it shall be the duty of the subscriber to use the security system so agreed or approved. 36. Acceptance of Certificate: (1) A subscriber shall be deemed to have accepted a certificate in the following circumstances:

(a) if he or she publishes such certificate or authorizes one or more persons to publish it, or
(b) if there is any basis to believe that he or she has accepted such certificate.

(2) If the certificate is accepted, the subscriber shall be deemed to have guaranteed to any person who relies on any information contained in such certificate the following:

(a) that the subscriber is authorized to hold the private key corresponding to the public key listed in the certificate,
(b) that all information and details provided by the subscriber to the Certification Authority in the course of issuing the certificate are accurate and correct, and all facts relating to the information contained in the certificate are true, and
(c) that, to the best of the subscriber's knowledge and belief, the information stated in the certificate is true and correct. 37. Secure Keeping of Private Key: (1) Every subscriber shall exercise due care to keep secure the private key corresponding to the public key listed in the certificate obtained by him or her and shall adopt all necessary measures to prevent any person not authorized to create the subscriber's digital signature from gaining knowledge of such key.

(2) If the subscriber's private key is disclosed anywhere for any reason or if such key is tampered with, the subscriber shall give notice thereof to the Certification Authority as soon as possible, and upon receipt of such notice, the Certification Authority shall immediately suspend the certificate.

(3) If a certificate is suspended under this Act, it shall be the duty of the subscriber to keep the private key secure under this section during the period of such suspension. 38.