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7 FDI rules to comply for IPLC License in India

Resale of IPLC is a service to resell the private leased circuits bought from the International Long Distance Operators. It’s to establish a PLC between India and the country of destination. In simple terms, it’s a service to establish an international gateway for internet via a privately leased circuit.

Needless to say, the orientation of this business type requires a Resale of IPLC license and inclusion of foreign direct investment. Here are the 7 FDI Rules to comply for IPLC license in India

Rule 1: About the Chief of Operations

The Chief Technical In-charge of Operations and the chief security officer of the IPLC Company should be an Indian Resident. Furthermore, all the officials of the reseller company with the responsibility to lawfully intercept the messages must be Indian residents.

Rule 2: Rules about the director board of the Company

THe company with IPLC License must have Directors who are Indian citizens. While foreigners can hold key positions, Chairman, CEO, or CFO, it requires approval of the Home Ministry. Furthermore, foreign members must go through regular assessment.

Such an assessment would be required on an yearly basis. If something of an adverse nature is found during this vetting process, the reseller will be responsible to deal with any penalties the Home Ministry levies on it.

Rule 3: Rules about what not to transfer outside India

Following are the entities that a company holding resale of IPLC certificate must not transfer outside India.

  1. Any accounting information of the subscriber
  2. Any user information

However, in certain extenuating circumstances, when it’s required by the law to provide accounting information to the ministry, the licensee must comply accordingly.

Rule 4: Rules about maintaining the privacy of the information

The applicant must put rules in place to ensure lawful interception and monitoring. The Union Home Secretary or Home Secretaries of the states/Union Territories authorizes the applicant to exercise those duties. This delegation is as per the Rule 419(A) of Indian telegraph act.

Rule 5: Rules about complying with security agencies

The Reseller of IPLC must provide access of traffic monitoring system and books of accounts to the security agencies when the agencies ask them to do so.

Rule 6: Rule if the reseller requires remote access

In case the reseller of International Private Leased Circuit requires remote access to the network, he has to take prior permission from the Department of Telecommunication. The DOT will first consult the security agencies to provide the access to the reseller  which would depend upon the purpose for which the reseller requires remote access. Read More: Benefits of Newspaper Registration

Rule 7: Rules if the licensor finds that licensee doesn’t meet the conditions

If the Department of Telecommunication deems that the licensee – the reseller of IPLC – has failed to meet any requirement for the license, it will cancel it. It allows the DOT to en-cash the financial bank guarantee and leaves non-liable of loss of any kind that’s bore by the licensee.

Conclusion

Maintaining your hold over the IPLC license is much more difficult than an already difficult procedure for obtaining it. Thus, you need to comprehend and follow all the rules associated with reselling of International Private Leased Circuit, especially if FDI in your company is more than 74%.

Here are the 7 FDI rules to comply to IPLC License in India. Following these rules is paramount if you want to maintain a hold of your IPLC registration certificate in India.

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