In the era of technology security surveillance is rapidly increasing in most of the nations worldwide. Continuous security threats to public safety and national security demand use of such systems. The surveillance is often carried out by governments or governmental organisations, but may also be carried out by corporations, either on behalf of governments or at their own initiative. Depending on each nation's laws and judicial systems, the legality of and the permission required to engage in mass surveillance varies. It is often distinguished from targeted surveillance. No one can deny the fact that electronic surveillance systems offer advanced functionalities which threaten the privacy of those recorded in the video. In order to increase the public acceptance of surveillance systems, it is important that they obey the law of the state where they are installed and that their deployment strikes a balance between security and the need to protect privacy. There is an urgent need to balance the usage of electronic surveillance against its negative impact on privacy. In this research paper researcher is trying to discuss privacy issues and legal requirements associated with electronic surveillance.