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The federal government is contemplating to tweak norms for e-commerce corporations having FDI to ban them from promoting merchandise of distributors by which these on-line marketplaces or their father or mother companies maintain stake not directly, in accordance with sources.
In December 2018, the federal government had barred the net market gamers from promoting merchandise of corporations by which they’ve a direct stake.
As per the present coverage, 100% FDI (overseas direct funding) is permitted in market e-commerce however it’s prohibited in inventory-based actions.
The consideration assumes significance as home merchants physique Confederation of All India Merchants (CAIT) has alleged that these corporations are violating FEMA and FDI guidelines.
Based on CAIT, the commerce and trade ministry has forwarded representations of alleged violations by Amazon and Flipkart to the Enforcement Directorate and the Reserve Financial institution for “needed motion”.
— to www.indiatvnews.com
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