On August 24, 2011, the Government of India’s Ministry of Communications & Information Technology issued a clarification regarding India’s new privacy regulations, known as the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 (the “Rules”), under Section 43A of the Information Technology Act 2000.

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On April 11, 2011, India adopted new privacy regulations, known as the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 (the “Rules”).  The Rules are final versions of the draft regulations issued in February 2011 and impose wide-ranging obligations on any “body corporate” (company) that “collects, receives, possesses, stores, deals or handles” personal information.  These obligations require companies to provide privacy policies, restrict the processing of sensitive personal data, restrict international data transfers and require additional security measures.  The Rules introduce an omnibus privacy law that is similar in many respects to existing EU data protection law, but which raises some fundamental challenges for India’s numerous outsourcing vendors, and their customers.

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