India, July 3 -- The Centre is reportedly working on a fresh legal framework to regulate virtual private network (VPN) providers. The new rules could require VPN providers to establish a physical presence in India, appoint compliance officers and designate local personnel to liaise with the government.

As per an Indian Express report, the proposed framework is also expected to include penal provisions for non-compliance, including possible jail terms for local employees of VPN companies.

The obligations are likely to be modelled on those imposed on large social media intermediaries under the Information Technology (IT) Rules, 2021.

The move comes amid growing concerns within the government that VPNs are increasingly being used to bypas...