Digital Signature Guide
Everything You Need to Know About E-Signatures
Prepared by NovaRock Advisory – AMFI ARN-344268
📋 What's Covered in This Guide
- Digital signature options
- e-sign platforms
- Security best practices
- Common mistakes to avoid
- Troubleshooting guide
Section 1: What is a Digital Signature?
A digital signature is an electronic form of a signature that can be used to authenticate the identity of the sender of a message or the signer of a document. It also ensures that the original content of the message or document that has been sent is unchanged.
Types of Digital Signatures in India
1. e-Sign (Aadhaar-based)
What it is:
Electronic signature service using Aadhaar authentication. Approved by Controller of Certifying Authorities (CCA) under Ministry of Electronics and IT.
How it works:
- Enter your Aadhaar number on the platform
- Receive OTP on registered mobile number
- Enter OTP to authenticate
- Document gets digitally signed instantly
Legal Validity: Legally valid under IT Act 2000 (amended 2008)
Best for: Quick document signing, KYC processes, mutual fund applications
2. DSC (Digital Signature Certificate)
What it is:
USB token-based digital signature issued by licensed Certifying Authorities. Higher security level than e-Sign.
How it works:
- Purchase DSC from authorized CA (like eMudhra, Sify, nCode)
- USB token contains your digital certificate
- Install drivers and sign documents using software
- Requires physical token for each signing
Cost: ₹800 - ₹2,500 per year (validity 1-3 years)
Best for: Income tax filing, company registrations, bulk document signing
3. Electronic Signature (Standard e-Signature)
What it is:
Simple electronic signature (like signing on touchscreen or uploading scanned signature)
How it works:
- Sign on touchscreen device (tablet/phone)
- Or upload scanned copy of physical signature
- Or type your name in signature font
Legal Validity: Valid for general documents but not for government/regulated transactions
Best for: Internal documents, agreements, informal contracts
| Type | Security Level | Cost | Setup Time | Best For |
|---|---|---|---|---|
| e-Sign (Aadhaar) | Medium-High | Free | 5 minutes | Financial documents |
| DSC (USB Token) | Very High | ₹800-2,500/yr | 2-3 days | Government filings |
| Standard e-Signature | Low-Medium | Free | Instant | General documents |
Section 2: Popular e-Sign Platforms in India
For Investment & Financial Documents
1. NSDL e-Sign
Provider: National Securities Depository Limited
- Most trusted platform for financial documents
- Integrated with all major AMCs and brokers
- Aadhaar OTP-based authentication
- Free for individual investors
- Website: egovesign.nsdl.com
2. DigiLocker
Provider: Government of India (MeitY)
- Free government platform for storing and signing documents
- Linked with Aadhaar
- Store KYC documents, PAN, Aadhaar securely
- e-Sign feature integrated
- App: Available on Play Store / App Store
3. eMudhra e-Sign
Provider: eMudhra (Licensed CA)
- Both free and paid plans
- Higher transaction limits on paid plans
- Supports bulk signing
- API available for businesses
4. DocuSign India
Provider: DocuSign Inc (International)
- Premium platform (paid)
- Advanced features like workflow, templates
- Used by large corporations
- Mobile app available
- 30-day free trial available
For mutual fund applications and financial documents, use NSDL e-Sign or DigiLocker. Both are free, government-approved, and accepted by all financial institutions in India.
Section 3: Step-by-Step: How to e-Sign Documents
Method 1: Using NSDL e-Sign (Recommended)
You'll receive an email or SMS with a link to sign the document from your advisor or AMC.
Click the link. It will redirect to NSDL e-Sign platform. Review the document carefully before proceeding.
Enter your 12-digit Aadhaar number. Ensure it matches the number registered with your bank and PAN.
Click "Send OTP". You'll receive a 6-digit OTP on your Aadhaar-registered mobile number within 30 seconds.
Enter the OTP within 5 minutes. Click "Sign" or "Submit".
You'll see a success message. Document is now digitally signed. Download signed copy for your records.
Method 2: Using DigiLocker
- Download DigiLocker app from Play Store / App Store
- Sign up using Aadhaar - one-time OTP verification required
- Upload documents to DigiLocker or access them from issuer
- Select document to sign from "Documents" section
- Choose e-Sign option and authenticate with Aadhaar OTP
- Download signed document from DigiLocker
Entire process takes 2-5 minutes. Keep your phone handy for OTP. Ensure stable internet connection to avoid timeout errors.
Section 4: Security Best Practices
✅ DO's - Follow These
- ✓ Always verify the sender before clicking any e-sign link
- ✓ Read the entire document carefully before signing
- ✓ Keep your Aadhaar-registered mobile number active and with you
- ✓ Download and save signed documents immediately
- ✓ Use secure internet connection (avoid public WiFi)
- ✓ Check document for digital signature certificate after signing
- ✓ Keep your Aadhaar and PAN details confidential
❌ DON'Ts - Avoid These
- ✗ Never share your Aadhaar OTP with anyone (not even advisors)
- ✗ Don't sign documents you haven't read completely
- ✗ Don't click on suspicious e-sign links from unknown senders
- ✗ Don't use public computers for e-signing sensitive documents
- ✗ Don't ignore certificate warnings or SSL errors
- ✗ Never sign blank or incomplete documents
Legitimate e-sign platforms will NEVER ask for your bank PIN, credit card details, or Aadhaar password. If any platform asks for these, it's a scam.
Section 5: Common Mistakes to Avoid
Mistake #1: Aadhaar-Mobile Number Mismatch
Problem: OTP not received because mobile number in Aadhaar is old/inactive.
Solution:
- Update mobile number in Aadhaar at nearest enrollment center
- Or use Aadhaar self-service portal (requires biometric authentication)
- Temporary fix: Use alternate signing method (physical signature)
Mistake #2: Session Timeout
Problem: Taking too long to review document; session expires before signing.
Solution:
- Download document first, review offline, then access link again
- Keep browser/app active during signing process
- Don't switch apps while OTP is being sent
- Complete within 10 minutes of opening link
Mistake #3: Wrong Aadhaar Number
Problem: Entered incorrect Aadhaar number; authentication fails.
Solution:
- Verify Aadhaar number from original card or DigiLocker
- Ensure Aadhaar is linked with PAN (mandatory for financial transactions)
- Check for typos - Aadhaar is 12 digits (no spaces when entering)
Mistake #4: Using VPN or Proxy
Problem: e-Sign platforms block VPN/proxy connections for security.
Solution:
- Disable VPN before accessing e-sign link
- Use direct internet connection (WiFi or mobile data)
- Clear browser cache if issues persist
Mistake #5: Multiple Sign Attempts
Problem: Requesting OTP multiple times; account temporarily locked.
Solution:
- Wait 30 minutes before trying again
- Request OTP only once per attempt
- Contact support if locked for more than 2 hours
Mistake #6: Browser Compatibility Issues
Problem: e-Sign page not loading properly on certain browsers.
Solution:
- Use updated Chrome, Firefox, or Edge browser
- Enable JavaScript and cookies
- Disable ad blockers temporarily
- Try incognito/private browsing mode
Section 6: Troubleshooting Guide
Issue: OTP Not Received
Possible Causes & Solutions:
- Mobile number not updated in Aadhaar
- Visit nearest Aadhaar enrollment center with original Aadhaar card
- Update mobile number (free of charge)
- Takes 24-48 hours to activate
- Network delay
- Wait up to 5 minutes for OTP
- Check SMS inbox and spam folder
- Request OTP again if not received after 5 minutes
- DND (Do Not Disturb) activated
- Deactivate DND by sending SMS "START 0" to 1909
- Wait 24 hours for DND removal
- OTPs are usually exempt from DND but may face delays
Issue: Document Not Opening
Quick Fixes:
- Clear browser cache and cookies
- Update browser to latest version
- Disable browser extensions temporarily
- Try different browser (Chrome recommended)
- Check internet connection stability
- Request new link from sender if link expired
Issue: "Invalid Certificate" Error
Solution Steps:
- Check if Aadhaar-PAN linking is complete (mandatory since 2023)
- Verify Aadhaar details are correct in UIDAI database
- Ensure name matches exactly between Aadhaar, PAN, and bank account
- Contact e-sign platform support if error persists
Issue: Signature Not Appearing on Document
Verification Steps:
- Download signed document and open in Adobe Reader
- Look for digital signature panel (usually at bottom or side)
- Click on signature icon to view certificate details
- If no signature visible, repeat signing process
- Ensure you completed all steps including final "Submit" button
Always download the signed document immediately after signing. E-sign platforms keep signed documents for limited time only (usually 7-30 days). Save multiple backup copies.
Section 7: Legal Validity & Compliance
Legal Framework in India
Digital signatures in India are governed by:
- Information Technology Act, 2000 - Primary legislation
- IT Amendment Act, 2008 - Introduced e-signatures
- Indian Evidence Act, 1872 (Section 65B) - Electronic records as evidence
- Aadhaar Act, 2016 - e-Sign framework
Where Digital Signatures are Accepted
| Document Type | e-Sign (Aadhaar) | DSC (USB Token) | Standard e-Signature |
|---|---|---|---|
| Mutual Fund Applications | ✓ Accepted | ✓ Accepted | ✗ Not Accepted |
| Demat Account Opening | ✓ Accepted | ✓ Accepted | ✗ Not Accepted |
| Income Tax Returns | ✗ Not Accepted | ✓ Accepted | ✗ Not Accepted |
| Company ROC Filings | ✗ Not Accepted | ✓ Accepted | ✗ Not Accepted |
| Insurance Policies | ✓ Accepted | ✓ Accepted | △ Varies |
| Loan Applications | ✓ Accepted | ✓ Accepted | △ Varies |
| General Contracts | ✓ Accepted | ✓ Accepted | ✓ Accepted |
While digital signatures are legally valid, certain documents still require wet signatures (physical pen-on-paper). Examples: Property registration deeds, wills, power of attorney, notarized documents. Check with your legal advisor for specific requirements.
Section 8: Cost Comparison
e-Sign (Aadhaar-based) - FREE
- No setup cost
- No annual fees
- Unlimited personal use
- Some platforms charge businesses (₹5-20 per signature for bulk)
DSC (Digital Signature Certificate)
Individual DSC Pricing:
- Class 2 DSC (Personal): ₹800 - ₹1,200 per year
- Class 3 DSC (Professional): ₹1,500 - ₹2,500 per year
- DGFT DSC (Import/Export): ₹1,800 - ₹3,000 per year
Additional Costs:
- USB Token: ₹500 - ₹800 (one-time)
- Renewal: Same as purchase price (every 1-2 years)
Premium e-Signature Platforms
DocuSign India Pricing:
- Personal Plan: $10/month (~₹830/month)
- Standard Plan: $25/month (~₹2,080/month)
- Business Pro: $40/month (~₹3,330/month)
Adobe Sign Pricing:
- Individual: $19.99/month (~₹1,660/month)
- Small Business: $29.99/month (~₹2,500/month)
For personal investment documents, stick with free e-Sign (Aadhaar-based). Only purchase DSC if you need to file income tax returns or company documents regularly. Premium platforms like DocuSign are only worth it for businesses with high volume of contracts.
✓ Quick Reference Checklist
- Use NSDL e-Sign or DigiLocker for investment documents (free & government-approved)
- Keep Aadhaar-registered mobile number active
- Ensure Aadhaar is linked with PAN (mandatory)
- Read documents completely before signing
- Never share Aadhaar OTP with anyone
- Download signed documents immediately
- Use secure internet connection (avoid public WiFi)
- Verify sender before clicking e-sign links
Section 9: Frequently Asked Questions
Q1: Is e-Sign legally valid?
Answer: Yes, e-Sign is legally valid under IT Act 2000 (amended 2008) and is equivalent to physical signature for most purposes. It's accepted by all financial institutions, banks, and government departments in India.
Q2: Can I use e-Sign without Aadhaar?
Answer: No, e-Sign in India requires Aadhaar authentication. If you don't have Aadhaar, you'll need to use physical signature or get a DSC (Digital Signature Certificate).
Q3: How many times can I use e-Sign?
Answer: Unlimited for personal use. There's no restriction on number of documents you can sign using Aadhaar-based e-Sign.
Q4: What if my Aadhaar mobile number is not active?
Answer: You'll need to update your mobile number in Aadhaar at nearest enrollment center. Bring original Aadhaar card and new mobile number. Update takes 24-48 hours to activate.
Q5: Can someone misuse my e-Signature?
Answer: No, e-Sign requires OTP sent to your registered mobile. Without OTP, no one can sign on your behalf. Keep your mobile and Aadhaar details confidential.
Q6: How long is an e-signed document valid?
Answer: e-Signed documents are valid permanently, just like physical signatures. The digital certificate embedded in document proves authenticity.
Q7: Do I need to print e-signed documents?
Answer: Not required. Digital copy is sufficient. However, keep backup copies in cloud storage (Google Drive, Dropbox) and local storage.
Q8: What if e-sign link expires?
Answer: Contact the sender (advisor, AMC, or institution) and request a fresh link. Links typically expire in 7-30 days depending on platform.
Need Help with Digital Signatures?
Our team at NovaRock Advisory is here to assist you with e-Sign setup, troubleshooting, and any questions about digital document signing.