The government has asked e-commerce companies Amazon and Flipkart to upload statutory audit reports certifying that they're compliant with the FDI rules that came into effect in February 2019, reports the Economic Times. The reports should be uploaded on the company websites by September 30. This was communicated during a meeting ecommerce companies yesterday with DPIIT secretary Guruprasad Mohapatra. While the FDI rules i.e. the Press Note 2 of 2018 had said that the FDI compliance certificates need to be submitted to the RBI, the FEMA notification in January 2019 regarding ecommerce marketplaces did not require this. FDI in e-commerce rules kicked in February 2019 DPIIT revised its guidelines on FDI in e-commerce and set out new rules for marketplaces and vendors, with relation to inventory and FDI, in December 2018. The new guidelines came into effect on February 1, 2019. Here’s a look at what the Press Note 2 of 2018 changed: The updated policy does not allow marketplaces to exercise control or ownership over the inventory of vendors on their platforms. For example, if a marketplace such as Amazon or Flipkart exercises ownership of control over inventory, this platform would no longer be a marketplace, but an inventory-based e-commerce business. The new policy reiterates that if a vendor sells over 25% of goods (presumably of all the goods sold on the platform) on the e-commerce marketplace, the marketplace will become an inventory based model in which FDI in not allowed. To be clear, the earlier FDI in ecommerce policy from 2017…
- India’s Consumer Protection Authority Notifies Guidelines For Dark Patterns, What’s New? December 1, 2023
- Tata Consultancy Services to pay $210 million in a trade secret row in the US December 1, 2023
- Indian Government Approves Scheme To Provide Drones To 15,000 Women Self Help Groups December 1, 2023
- Google agrees to pay news publishers in Canada December 1, 2023
- Court Watch: Tech Policy Cases India’s Courts Are Hearing this December December 1, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...
Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...
RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.
Straw man fallacy: IT Ministers’ defence of government exemptions in data protection law misses the point
Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...
The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...