As part of periodic updates to the Board, Kirit, the Company Secretary of Jiyot Techno Ltd, informed the Board of Directors about the National Data Governance Policy. He further added that 'to promote innovation and rese

CS Professional · Environmental, Social and Governance (ESG) Principles and Practice · PYQS · June 2026
As part of periodic updates to the Board, Kirit, the Company Secretary of Jiyot Techno Ltd, informed the Board of Directors about the National Data Governance Policy. He further added that 'to promote innovation and research by start-ups and academia, the Union Budget 2023-24 proposed the introduction of a National Data Governance Policy to enable access to anonymized data for fostering innovation. As part of this policy, the Government of India also plans to establish the India Datasets Programme, which will consist of non-personal and anonymized datasets collected by government entities from Indian citizens or individuals residing in India.' Upon detailed deliberations, the Board asked Kirit, to provide further inputs from a regulatory perspective to understand data privacy requirements and to draft an appropriate policy for the Company. Prepare a brief note on important regulatory dimensions relating to privacy and disclosure of information under the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 framed under the Information Technology Act, 2000.

Answer & Explanation:

The Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 provides the regulatory framework for data privacy and disclosure of information and requires formulation of policy thereof. The statutory provisions in relation to the same are as under: (1) The body corporate or any person who on behalf of body corporate collects, receives, possess, stores, deals or handle information of provider of information, shall provide a privacy policy for handling of or dealing in personal information including sensitive personal data or information and ensure that the same are available for view by such providers of information who has provided such information under lawful contract. (2) Such policy shall be published on website of body corporate or any person on its behalf and shall provide for- (i) Clear and easily accessible statements of its practices and policies; (ii) type of personal or sensitive personal data or information collected under rule 3; (iii) purpose of collection and usage of such information; (iv) disclosure of information including sensitive personal data or information as provided in rule 6; (v) reasonable security practices and procedures. As per Rule 2(i), "Personal information" means any information that relates to a natural person, which, either directly or indirectly, in combination with other information available or likely to be available with a body corporate, is capable of identifying such person. As per Rule 3, Sensitive personal data or information of a person means such personal information which consists of information relating to: (i) password; (ii) financial information such as Bank account or credit card or debit card or other payment instrument details; (iii) physical, physiological and mental health condition; (iv) sexual orientation; (v) medical records and history; (vi) Biometric information; (vii) any detail relating to the above clauses as provided to body corporate for providing service; and (viii) any of the information received under above clauses by body corporate for processing, stored or processed under lawful contract or otherwise. Further, any information that is freely available or accessible in public domain or furnished under the Right to Information Act, 2005 or any other law for the time being in force shall not be regarded as sensitive personal data or information for the purposes of these rules.

Topics: Data Governance, Legal Framework

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