Latest News | Govt Mulls Tweaking FDI Norms in E-commerce Sector
Get latest articles and stories on Latest News at LatestLY. 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.
New Delhi, Jan 19 (PTI) 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".
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)