Govt mulls tweaking FDI norms in e-commerce sector

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The authorities is contemplating to tweak norms for e-commerce firms having FDI to ban them from promoting merchandise of distributors during which these on-line marketplaces or their mother or father companies maintain stake not directly, in response to sources.
In December 2018, the federal government had barred the net market gamers from promoting merchandise of firms during which they’ve a direct stake.

As per the present coverage, one hundred pc 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 Traders (CAIT) has alleged that these firms are violating FEMA and FDI guidelines.
According to CAIT, the commerce and trade ministry has forwarded representations of alleged violations by Amazon and Flipkart to the Enforcement Directorate and the Reserve Bank for “necessary action”.
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