CONTRACT NOTE FAQ

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FAQ on Digitally Signed Contract Note
Digital Signature Certificates
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* What is the legal framework for digitally signed documents? <#1>
* What is a digital signature? <#2>
* How does a digital signature look like? <#3>
* Can you actually see the signer's handwritten signature? <#4>
* What is a Digital Signature Certificate? <#5>
* Who can issue a digital signature certificate to a subscriber? <#6>
* What is a Certification Authority? <#7>
* Have Certifying Authorities been appointed by the Controller? <#8>
* Can a digital signature be forged? <#9>
* How does a digital signature work? <#10>
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Digitally Signed Contract Notes
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* How ICICIdirect is making use of this technology? <#11>
* How can I view the Digital Signature? <#12>
* Will I continue to receive physical contract notes? <#13>
* Do I pay anything for the Digital Signed Contract Notes? <#14>
* Can I print the contract notes? <#15>
* For what duration would the Digital Signature Certificate be
available on the website? <#16>

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 * *What is the legal framework for digitally signed documents?*
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Government has enacted the IT Act 2000 on 7th June 2000 with an
aim to provide a legal and regulatory framework for promotion of
e-Commerce and e-Governance. The Act contains the provisions with
regard to Legal recognition of digital signatures, security
procedure for electronic records and digital signature,
appointment of Certifying Authorities and Controller of Certifying
Authorities, Issue of license to Certifying Authorities to issue
digital signature certificates, etc. among other legislative
provisions. Use of electronic records or digital signature would
be valid in Government and its agencies as per the provision of
the Act
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* *What is a digital signature?*
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A digital signature should not be confused with a digitized signature (a
scan of a hand-written signature).
A digital signature is an encryption and decryption process that does
two things
1. positively identifies the author of an electronic message
(who has digitally signed the message)
2. Verifies the integrity of the message (that it has not been
tampered with during its transmission).
Digital signatures are based on the RSA public key encryption system. In
this system the author of a message keeps his/her private key secret and
publishes the corresponding public key. Any text encrypted with the
private key can be decrypted with the public key, and vice versa.
However, the knowledge of the public key is not sufficient to deduce the
private key.
Therefore the holder of a public key cannot pretend to be the holder of
the corresponding private key.
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* *How does a digital signature look like? *
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A sample digital signature looks as under:
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* * **Can you actually see the signer's handwritten signature? *
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No, there is no relationship to the signer's handwritten signature. The
visible portion of the digital signature contains the signer's name,
title and organization name, along with the certificate serial number
and the Certifying Authority name.
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* *What is a Digital Signature Certificate? *
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A digital signature certificate is a computer-generated record. It
contains the identity record. It contains the identity of the subscriber
(holder of the certificate), the public key which is digitally signed by
the Certifying Authority. The digital signature certificate is
associated with both a public key and a private key.
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* *Who can issue a digital signature certificate to a subscriber? *
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A Certifying Authority can issue a digital signature certificate to a
subscriber. The IT Act and the Certifying Authorities Rules framed under
the Act stipulates the methods for issuance of a digital signature
certificate.
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* *What is a Certification Authority? *
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A Certification Authority is a trusted third party that verifies the
identity of an applicant registering for a digital certificate. Once a
Certification Authority is satisfied as to the authenticity of an
applicant's identity, it issues that person a digital certificate
binding his or her identity to a public key. In case of ICICIdirect, the
certifying authority is Safe Scrypt.
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* *Have Certifying Authorities been appointed by the Controller?*
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Yes, the Controller of Certifying Authorities has appointed Safe Scrypt
as the first Certifying Authority in India.
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* *Can a digital signature be forged?*
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Not likely. It is protected by several layers of highly complex encryption.

With digital signatures, forgery is -much more difficult than forging a

handwritten signature. First, a digital signature is more of a process
than just affixing a signature. For example, when the document is
"digitally signed," the digital software scans the document and creates
a calculation, which represents the document. This calculation becomes
part of the "digital signature." When the recipient authenticates the
signature, a similar process is carried out. The sender's and the
receiver's calculations are then compared. If the results are the same,
the signature is valid; if they are different, the signature is not valid.
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* *How does a digital signature work? *
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We would explain it with simple example digitally signed emails.
Suppose *A* and *B* wishes to correspond electronically. A wants to
assure B that he originated the electronic message, and that its
contents have not been tampered with. A can do so by signing the message
with his digital signature.
When *A* clicks on the digital signature option on his e-mail
application, a mathematical formula known as a hash function is applied
to the message, The message is converted it to a fixed-length string of
characters called a "message digest". The digest acts as a "digital
fingerprint" of the original message. If the original message is changed
in any way, it will not produce the same message digest when the hash
function is applied again. *A*'s software then encrypts the message
digest with his private key, producing a digital signature of the
message. He transmits the message and digital signature to *B*.
*B* uses *A*'s public key to decrypt the digital signature, revealing
the message digest. Since only *A*'s public key can decrypt the digital
signature, he is able to verify that *A* was the sender of the message.
To verify the message content, B's software applies the hash function to
the message he received from A. The message digests should be identical.
If they are, *B* knows the message has not been changed and he is
assured of its integrity.
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Digitally Signed Contract Notes
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* * **How is ICICIdirect making use of this technology? *
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ICICIdirect is making use of this technology to sign the contract notes
digitally and making the same available online. Digitally signed
contract notes would be made available to the customers by evening on
the trading day itself. Features include the provision to verify the
authenticity of the digital signatures.
SEBI has permitted issuance of digitally signed contract notes vide its
Circular (SMDRP/POLICY/CIR-56/00 dated December 15, 2000)
<SEBI_Circular.htm>, With the appointment of Certifying Authorities, and
the approval from SEBI, Digitally Signed Contract Notes are now
acceptable as legally valid document
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* *How can I view the Digital Singed Contract Note? *
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After you log in, you would have to go to the customer service page.
There you will have to click on the link for Digital Contract Note. You
would have to select the details and click on 'verify'.
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* *Will I continue to receive physical contract notes?*
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ICICIdirect would send a consolidated physical statement for the
transactions done during the quarter. This statement would be designed
in a very user friendly format and will be sent to you physically, once
in a quarter.
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* *Do I pay anything for the Digital Signed Contract Notes?*
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No. You do not have to pay anything for the Digital Signed Contract Notes.

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* *Can I print the Contract Note?*
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Yes, there is an option of both saving as well as printing the Contract
Note.

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* *For what duration would the Digital Signature Certificate be
available on the website?*
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You can view the Digital Signature Certificate on the website upto seven
years.
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