Tuesday, March 29, 2016

GOVERNMENT PERMITS 100% FDI IN E-COMMERCE TRANSACTIONS

The Department of Industrial Policy and Promotion (DIPP) on FDI in e-commerce, foreign direct investment (FDI)  permitted 100 per cent FDI in the market place format of e-commerce retailing with a view to attract more foreign investments.

To bring clarity, the DIPP has also come out with the definition of ‘e-commerce’, ‘inventory-based model’ and ‘market place model’.

Market place model of e-commerce means providing of an IT platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.

The inventory-based model of e-commerce means an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to consumers directly, according to the guidelines.




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