Information technology act, 2000 provides the required legal sanctity to the digital signatures based on asymmetric crypto system. The digital signatures are now accepted at par with handwritten signatures and the electronic documents that have been digitally signed are treated at par with paper documents. The act provides the basic legal and administrative framework for e-commerce, and prompts its growth by creating trust in electronic environment. It is based on Model Law for e-commerce proposed by UNCITRAL with the following major concepts: Legal recognition of data messages, Writing Signature, Original, Admissibility and evidential weight of data message, retention of data message, Formation and validity of contracts, Recognition of parties by data message, Attribution of data message, Acknowledgement of receipt, Time and dispatch and receipt of messages.