Govt mulls tweaking FDI norms in e-commerce sector
The government is considering to tweak norms for e-commerce companies having FDI to prohibit them from selling products of vendors in which these online marketplaces or their parent firms hold stake indirectly, according to sources.
In December 2018, the government had barred the online marketplace players from selling products of companies in which they have a direct stake.
As per the current policy, 100 percent FDI (foreign direct investment) is permitted in marketplace e-commerce but it is prohibited in inventory-based activities.
The consideration assumes significance as domestic traders body Confederation of All India Traders (CAIT) has alleged that these companies are violating FEMA and FDI rules.
According to CAIT, the commerce and industry ministry has forwarded representations of alleged violations by Amazon and Flipkart to the Enforcement Directorate and the Reserve Bank for “necessary action”.
Latest Business News
Stay connected with us on social media platform for instant update click here to join our 👉️👉️ Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Business headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Also, if you like our efforts, consider sharing this story with your friends, this will encourage us to bring more exciting updates for you.
