Connekt Updates
DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION
PRESS NOTE NO.2: REVIEW OF THE POLICY ON FOREIGN DIRECT INVESTMENT (FDI) IN E-COMMERCE
The Ministry of Commerce and Industry, Department of Industrial Policy & Promotion vide its Press note no 2 on December 26, 2018 has made amendment in policy of Foreign Direct Investment (FDI) in e-commerce. The press note shall be effective from February 01, 2019
The key highlights of the said amendment are as follows:
- Previously, an E-commerce entity providing a marketplace would not exercise ownership over the inventory i.e. goods purported to be sold. Such an ownership over the inventory would render the business into inventory based model. However, now as per the amendment, the E-commerce entity providing a marketplace will not exercise ownership as well as control over the inventory. Read more…