INSUBCONTINENT EXCLUSIVE:
These changes will come into effect from February 1 next year.Tightening norms for e-commerce firms having foreign investment, the
government on Wednesday barred online marketplaces like Flipkart and Amazon from selling products of companies where they hold stakes and
banned exclusive marketing arrangements that could influence product price
The revised policy on foreign direct investment in online retail, issued by the commerce and industry ministry, also said that these firms
have to offer equal services or facilities to all its vendors without discrimination.The revised norms are aimed at protecting the interest
of domestic players, who have to face tough competition from e-retailers having deep pockets from foreign investors, the ministry said
vendor will be deemed to be controlled by e-commerce marketplace entity if more than 25 per cent of purchases of such vendor are from the
participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity
logistics provided by e-commerce companies to vendors in which they have direct or indirect equity participation or common control stake,
purposes of this clause, provision of services to any vendor on such terms which are not made available to other vendors in similar
along with a report of statutory auditor to the RBI, confirming compliance of guidelines by September 30th of every year for the preceding
The decision comes against the backdrop of several complaints being flagged by domestic traders on heavy discounts being given by e-commerce
genuine, independent sellers, many of whom are MSMEs
These changes will enable a level playing field for all sellers, helping them leverage the reach of e-commerce"
move could adversely impact investments being made to bring new sellers on board.
