Flipkart, Amazon, Can't Sell Products of Entities In Which they Own the stake : Govt
By MYBRANDBOOK
The Govt. on Wednesday has battened the e-commerce marketplaces such as Flipkart and Amazon from selling products of companies in which they have a stake directly or indirectly.
“An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity,” according to a statement by the Commerce and Industry Ministry, India. It also prohibited e-commerce companies from entering into an agreement for exclusive sale of products.
It disallowed e-commerce firms from entering into an agreement for an exclusive sale of products.
Besides, the revised policy on foreign direct investment in online retail firms said that services should be provided by e-commerce marketplace entity or other firms in which e-retail company has a direct or indirect equity participation or common control to vendors on the platform at arms length and in a fair and non-discriminatory manner. Services should be provided by e-commerce marketplace entity or other firms in which e-retail company has direct or indirect equity participation or common control to vendors on the platform at arm’s length and in a fair and non-discriminatory manner, added revised policy on foreign direct investment (FDI) in e-retail firms.
"Cashback provided by the group companies of marketplace entity to buyers shall be fair and non-discriminatory," the ministry's notification said. It further said that these companies will have to file a certificate along with a report of statutory auditor to the Reserve Bank of India, confirming compliance of guidelines by Sept. 30 of every year for the preceding fiscal. These firms have to file a certificate along with a report of a statutory auditor to the RBI to confirm they are complying with the guidelines.
These changes will come into effect from Feb.1 this year. The decision comes in the backdrop of several complaints lodged by domestic traders on heavy discounts being offered by e-commerce players to consumers.
It further said that these companies will have to file a certificate along with a report of statutory auditor to the Reserve Bank of India, confirming compliance of guidelines by Sept. 30 of every year for the preceding fiscal.
These changes will come into effect from Feb.1 this year. The decision comes in the backdrop of several complaints lodged by domestic traders on heavy discounts being offered by e-commerce players to consumers.
Currently, 100 per cent FDI is permitted in marketplace e-commerce activities, not in inventory-based activities.
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
Autodesk continually pushing the boundaries in the Design and
Autodesk’s vision is of a better world designed and made for all. It inte
Alpha Max offers high end solutions in the network space to en
The vision at Alpha Max is to attain quality as the trademark and create a
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
HAVELLS INDIA LTD.
MATRIX COMSEC PVT. LTD.
EXATRON SERVERS MANUFACTURING PVT. LTD.
FRESHWORKS TECHNOLOGIES PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
ICONS OF INDIA : SRIDHAR VEMBU
Sridhar Vembu is the chief executive officer (CEO) of Zoho Corporation...
Icons Of India : NANDAN NILEKANI
Nandan Nilekani is the Co-Founder and Chairman of Infosys Technologies...
Icons Of India : Dr. Arvind Gupta
Arvind Gupta is the Head and Co-Founder of the Digital India Foundatio...
PARTNER SPEAKERS
PSU
DRDO - Defence Research and Development Organisation
DRDO responsible for the development of technology for use by the mili...
TCIL - Telecommunications Consultants India Limited
TCIL is a government-owned engineering and consultancy company...
UIDAI - Unique Identification Authority of India
UIDAI and the Aadhaar system represent a significant milestone in Indi...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - AJAY BANGA, President - World Bank
Ajay Banga is an Indian-born American business executive who currently...
Indian Tech Talent Excelling The Tech World - REVATHI ADVAITHI, CEO- Flex
Revathi Advaithi, the CEO of Flex, is a dynamic leader driving growth ...
Indian Tech Talent Excelling The Tech World - NIKESH ARORA, Chairman CEO - Palo Alto Networks
Nikesh Arora, the Chairman and CEO of Palo Alto Networks, is steering ...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
