Regulation 3(5) requires structured digital database shall not be outsourced and shall
be maintained internally with adequate internal controls and checks. Whether a listed company can use software provided by third party vendors, wherein the server is of the
vendor but requisite entries are made by the employees of the company only?
The third party vendors are providing the services/software on login basis, where the server
is maintained by the vendor. Therefore, the vendor may have access to such records which
would be contrary to the regulations with respect to maintenance of structured digital
database
