The Department of Industrial Policy and Promotion (DIPP) issued guidelines today relating to foreign direct investment in the e-commerce industry effective today. Please read the document in the link for the press note: DIPP guidelines on FDI in e-commerce
Interesting highlights include:
(a) Defining and classifying ‘e-commerce’, ‘e-commerce entity’, ‘Inventory based model of e-commerce’, and ‘Market based model of e-commerce’;
(b) Permitting 100% FDI in the Market based model of e-commerce but disallowing FDI in an Inventory based model of e-commerce;
(c) Conditions for permitting FDI including inter-alia, not exercising ownership over the inventory, not permitting over 25% of its sales through its market place from one vendor or through their group companies and not influencing directly or indirectly the sale price of goods and services by maintaining a level playing field.