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ARTICLE · 23 MAY 2016

100 % FDI In E-Commerce Marketplace – DIPP Defines The Rules

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The Department of Industrial Policy and Promotion, Ministry of Commerce and Industry has released Press Note No. 3 (2016 series) dated 29th March, 2016 wherein it has released guidelines for Foreign Direct Investment on E-commerce.

IndiaGovernment, Public Sector

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry has released Press Note No. 3 (2016 series) dated 29th March, 2016 wherein it has released guidelines for Foreign Direct Investment on E-commerce .

In order to provide clarity to the FDI policy, following guidelines were provided:

1. Definitions have been provided for 'E-commerce', 'E-commerce entity', 'Inventory based model of E-commerce' and 'Market place based model of E-commerce'.

E-commerce now includes buying and selling of goods and services over any digital or electronic network. E-commerce entity would include any company conducting E-commerce business in India.

Inventory based model of E-commerce is defined as an inventory based model where inventory is owned by the E-commerce entity and is sold directly to the consumers (B2C).

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