Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 73,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'catslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 73,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/retail-firms-with-fdi-cant-sell-online-17235/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/retail-firms-with-fdi-cant-sell-online-17235/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'catslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 74,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'artileslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 74,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/retail-firms-with-fdi-cant-sell-online-17235/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/retail-firms-with-fdi-cant-sell-online-17235/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'artileslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-trace').style.display = (document.getElementById('cakeErr680480ab0bd8b-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr680480ab0bd8b-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-code').style.display = (document.getElementById('cakeErr680480ab0bd8b-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-context').style.display = (document.getElementById('cakeErr680480ab0bd8b-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr680480ab0bd8b-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr680480ab0bd8b-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 17107,
		&#039;title&#039; =&gt; &#039;Retail firms with FDI can’t sell online&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Indian Express&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;
&lt;br /&gt;
However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;
&lt;br /&gt;
&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;
&lt;br /&gt;
Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;
&lt;br /&gt;
However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;
&lt;br /&gt;
If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;
&lt;br /&gt;
The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;
&lt;br /&gt;
According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;
&lt;br /&gt;
Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;
&lt;br /&gt;
Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Indian Express, 22 September, 2012, http://www.indianexpress.com/news/retail-firms-with-fdi-cant-sell-online/1006095/0&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;retail-firms-with-fdi-cant-sell-online-17235&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 17235,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 17107,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Retail firms with FDI can’t sell online&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;FDI,Retail&#039;,
	&#039;metaDesc&#039; =&gt; &#039;
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Indian Express&lt;br /&gt;&lt;br /&gt;&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;&lt;br /&gt;However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;&lt;br /&gt;&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;&lt;br /&gt;Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;&lt;br /&gt;However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;&lt;br /&gt;If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;&lt;br /&gt;The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;&lt;br /&gt;According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;&lt;br /&gt;Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;&lt;br /&gt;Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 17107,
	&#039;title&#039; =&gt; &#039;Retail firms with FDI can’t sell online&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Indian Express&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;
&lt;br /&gt;
However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;
&lt;br /&gt;
&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;
&lt;br /&gt;
Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;
&lt;br /&gt;
However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;
&lt;br /&gt;
If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;
&lt;br /&gt;
The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;
&lt;br /&gt;
According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;
&lt;br /&gt;
Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;
&lt;br /&gt;
Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Indian Express, 22 September, 2012, http://www.indianexpress.com/news/retail-firms-with-fdi-cant-sell-online/1006095/0&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;retail-firms-with-fdi-cant-sell-online-17235&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 17235,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 17107
$metaTitle = &#039;LATEST NEWS UPDATES | Retail firms with FDI can’t sell online&#039;
$metaKeywords = &#039;FDI,Retail&#039;
$metaDesc = &#039;
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Indian Express&lt;br /&gt;&lt;br /&gt;&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;&lt;br /&gt;However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;&lt;br /&gt;&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;&lt;br /&gt;Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;&lt;br /&gt;However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;&lt;br /&gt;If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;&lt;br /&gt;The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;&lt;br /&gt;According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;&lt;br /&gt;Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;&lt;br /&gt;Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/retail-firms-with-fdi-cant-sell-online-17235.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Retail firms with FDI can’t sell online | Im4change.org</title>
    <meta name="description" content="
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Retail firms with FDI can’t sell online</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div align="justify">-The Indian Express<br /><br /><em>DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities<br /></em><br />The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.<br /><br />However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.<br /><br />&quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.<br /><br />Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.<br /><br />However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.<br /><br />If this firm creates another firm which sells products online then it would be permissible.<br /><br />The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&rdquo;.<br /><br />According to Pinakiranjan Mishra of Ernst &amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&quot; said Mishra.<br /><br />Even DIPP echoes this point. &quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &quot;We can't apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&quot;<br /><br />Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&quot; <br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$maxBufferLength = (int) 8192
$file = '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php'
$line = (int) 853
$message = 'Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853'
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 48
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Code Context
            $response->getStatusCode(),

            ($reasonPhrase ? ' ' . $reasonPhrase : '')

        ));
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-trace').style.display = (document.getElementById('cakeErr680480ab0bd8b-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr680480ab0bd8b-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-code').style.display = (document.getElementById('cakeErr680480ab0bd8b-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-context').style.display = (document.getElementById('cakeErr680480ab0bd8b-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr680480ab0bd8b-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr680480ab0bd8b-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 17107,
		&#039;title&#039; =&gt; &#039;Retail firms with FDI can’t sell online&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Indian Express&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;
&lt;br /&gt;
However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;
&lt;br /&gt;
&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;
&lt;br /&gt;
Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;
&lt;br /&gt;
However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;
&lt;br /&gt;
If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;
&lt;br /&gt;
The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;
&lt;br /&gt;
According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;
&lt;br /&gt;
Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;
&lt;br /&gt;
Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Indian Express, 22 September, 2012, http://www.indianexpress.com/news/retail-firms-with-fdi-cant-sell-online/1006095/0&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;retail-firms-with-fdi-cant-sell-online-17235&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 17235,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 17107,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Retail firms with FDI can’t sell online&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;FDI,Retail&#039;,
	&#039;metaDesc&#039; =&gt; &#039;
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Indian Express&lt;br /&gt;&lt;br /&gt;&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;&lt;br /&gt;However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;&lt;br /&gt;&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;&lt;br /&gt;Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;&lt;br /&gt;However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;&lt;br /&gt;If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;&lt;br /&gt;The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;&lt;br /&gt;According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;&lt;br /&gt;Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;&lt;br /&gt;Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 17107,
	&#039;title&#039; =&gt; &#039;Retail firms with FDI can’t sell online&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Indian Express&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;
&lt;br /&gt;
However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;
&lt;br /&gt;
&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;
&lt;br /&gt;
Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;
&lt;br /&gt;
However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;
&lt;br /&gt;
If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;
&lt;br /&gt;
The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;
&lt;br /&gt;
According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;
&lt;br /&gt;
Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;
&lt;br /&gt;
Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Indian Express, 22 September, 2012, http://www.indianexpress.com/news/retail-firms-with-fdi-cant-sell-online/1006095/0&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;retail-firms-with-fdi-cant-sell-online-17235&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 17235,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 17107
$metaTitle = &#039;LATEST NEWS UPDATES | Retail firms with FDI can’t sell online&#039;
$metaKeywords = &#039;FDI,Retail&#039;
$metaDesc = &#039;
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Indian Express&lt;br /&gt;&lt;br /&gt;&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;&lt;br /&gt;However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;&lt;br /&gt;&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;&lt;br /&gt;Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;&lt;br /&gt;However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;&lt;br /&gt;If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;&lt;br /&gt;The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;&lt;br /&gt;According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;&lt;br /&gt;Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;&lt;br /&gt;Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/retail-firms-with-fdi-cant-sell-online-17235.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Retail firms with FDI can’t sell online | Im4change.org</title>
    <meta name="description" content="
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Retail firms with FDI can’t sell online</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div align="justify">-The Indian Express<br /><br /><em>DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities<br /></em><br />The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.<br /><br />However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.<br /><br />&quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.<br /><br />Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.<br /><br />However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.<br /><br />If this firm creates another firm which sells products online then it would be permissible.<br /><br />The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&rdquo;.<br /><br />According to Pinakiranjan Mishra of Ernst &amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&quot; said Mishra.<br /><br />Even DIPP echoes this point. &quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &quot;We can't apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&quot;<br /><br />Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&quot; <br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$reasonPhrase = 'OK'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitStatusLine() - CORE/src/Http/ResponseEmitter.php, line 148
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 54
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Code Context
                    $value

                ), $first);

                $first = false;
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-trace').style.display = (document.getElementById('cakeErr680480ab0bd8b-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr680480ab0bd8b-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-code').style.display = (document.getElementById('cakeErr680480ab0bd8b-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr680480ab0bd8b-context').style.display = (document.getElementById('cakeErr680480ab0bd8b-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr680480ab0bd8b-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr680480ab0bd8b-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 17107,
		&#039;title&#039; =&gt; &#039;Retail firms with FDI can’t sell online&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Indian Express&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;
&lt;br /&gt;
However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;
&lt;br /&gt;
&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;
&lt;br /&gt;
Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;
&lt;br /&gt;
However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;
&lt;br /&gt;
If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;
&lt;br /&gt;
The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;
&lt;br /&gt;
According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;
&lt;br /&gt;
Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;
&lt;br /&gt;
Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Indian Express, 22 September, 2012, http://www.indianexpress.com/news/retail-firms-with-fdi-cant-sell-online/1006095/0&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;retail-firms-with-fdi-cant-sell-online-17235&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 17235,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 17107,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Retail firms with FDI can’t sell online&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;FDI,Retail&#039;,
	&#039;metaDesc&#039; =&gt; &#039;
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Indian Express&lt;br /&gt;&lt;br /&gt;&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;&lt;br /&gt;However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;&lt;br /&gt;&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;&lt;br /&gt;Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;&lt;br /&gt;However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;&lt;br /&gt;If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;&lt;br /&gt;The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;&lt;br /&gt;According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;&lt;br /&gt;Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;&lt;br /&gt;Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 17107,
	&#039;title&#039; =&gt; &#039;Retail firms with FDI can’t sell online&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Indian Express&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;
&lt;br /&gt;
However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;
&lt;br /&gt;
&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;
&lt;br /&gt;
Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;
&lt;br /&gt;
However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;
&lt;br /&gt;
If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;
&lt;br /&gt;
The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;
&lt;br /&gt;
According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;
&lt;br /&gt;
Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;
&lt;br /&gt;
Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Indian Express, 22 September, 2012, http://www.indianexpress.com/news/retail-firms-with-fdi-cant-sell-online/1006095/0&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;retail-firms-with-fdi-cant-sell-online-17235&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 17235,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 17107
$metaTitle = &#039;LATEST NEWS UPDATES | Retail firms with FDI can’t sell online&#039;
$metaKeywords = &#039;FDI,Retail&#039;
$metaDesc = &#039;
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Indian Express&lt;br /&gt;&lt;br /&gt;&lt;em&gt;DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.&lt;br /&gt;&lt;br /&gt;However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.&lt;br /&gt;&lt;br /&gt;&amp;quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&amp;rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.&lt;br /&gt;&lt;br /&gt;Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &amp;ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&amp;rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.&lt;br /&gt;&lt;br /&gt;However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.&lt;br /&gt;&lt;br /&gt;If this firm creates another firm which sells products online then it would be permissible.&lt;br /&gt;&lt;br /&gt;The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &amp;quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&amp;rdquo;.&lt;br /&gt;&lt;br /&gt;According to Pinakiranjan Mishra of Ernst &amp;amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &amp;quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&amp;quot; said Mishra.&lt;br /&gt;&lt;br /&gt;Even DIPP echoes this point. &amp;quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&amp;rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &amp;quot;We can&#039;t apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&amp;quot;&lt;br /&gt;&lt;br /&gt;Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &amp;quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&amp;quot; &lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/retail-firms-with-fdi-cant-sell-online-17235.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Retail firms with FDI can’t sell online | Im4change.org</title>
    <meta name="description" content="
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Retail firms with FDI can’t sell online</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div align="justify">-The Indian Express<br /><br /><em>DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities<br /></em><br />The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.<br /><br />However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.<br /><br />&quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.<br /><br />Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.<br /><br />However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.<br /><br />If this firm creates another firm which sells products online then it would be permissible.<br /><br />The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&rdquo;.<br /><br />According to Pinakiranjan Mishra of Ernst &amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&quot; said Mishra.<br /><br />Even DIPP echoes this point. &quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &quot;We can't apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&quot;<br /><br />Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&quot; <br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$cookies = []
$values = [
	(int) 0 => 'text/html; charset=UTF-8'
]
$name = 'Content-Type'
$first = true
$value = 'text/html; charset=UTF-8'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitHeaders() - CORE/src/Http/ResponseEmitter.php, line 181
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 55
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

<head>

    <link rel="canonical" href="<?php echo Configure::read('SITE_URL'); ?><?php echo $urlPrefix;?><?php echo $article_current->category->slug; ?>/<?php echo $article_current->seo_url; ?>.html"/>

    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>

$viewFile = '/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp'
$dataForView = [
	'article_current' => object(App\Model\Entity\Article) {

		'id' => (int) 17107,
		'title' => 'Retail firms with FDI can’t sell online',
		'subheading' => '',
		'description' => '<div align="justify">
-The Indian Express<br />
<br />
<em>DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities<br />
</em><br />
The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.<br />
<br />
However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.<br />
<br />
&quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.<br />
<br />
Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.<br />
<br />
However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.<br />
<br />
If this firm creates another firm which sells products online then it would be permissible.<br />
<br />
The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&rdquo;.<br />
<br />
According to Pinakiranjan Mishra of Ernst &amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&quot; said Mishra.<br />
<br />
Even DIPP echoes this point. &quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &quot;We can't apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&quot;<br />
<br />
Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&quot; <br />
</div>',
		'credit_writer' => 'The Indian Express, 22 September, 2012, http://www.indianexpress.com/news/retail-firms-with-fdi-cant-sell-online/1006095/0',
		'article_img' => '',
		'article_img_thumb' => '',
		'status' => (int) 1,
		'show_on_home' => (int) 1,
		'lang' => 'EN',
		'category_id' => (int) 16,
		'tag_keyword' => '',
		'seo_url' => 'retail-firms-with-fdi-cant-sell-online-17235',
		'meta_title' => null,
		'meta_keywords' => null,
		'meta_description' => null,
		'noindex' => (int) 0,
		'publish_date' => object(Cake\I18n\FrozenDate) {},
		'most_visit_section_id' => null,
		'article_big_img' => null,
		'liveid' => (int) 17235,
		'created' => object(Cake\I18n\FrozenTime) {},
		'modified' => object(Cake\I18n\FrozenTime) {},
		'edate' => '',
		'tags' => [
			[maximum depth reached]
		],
		'category' => object(App\Model\Entity\Category) {},
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[hasErrors]' => false,
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'Articles'
	
	},
	'articleid' => (int) 17107,
	'metaTitle' => 'LATEST NEWS UPDATES | Retail firms with FDI can’t sell online',
	'metaKeywords' => 'FDI,Retail',
	'metaDesc' => '
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer...',
	'disp' => '<div align="justify">-The Indian Express<br /><br /><em>DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities<br /></em><br />The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.<br /><br />However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.<br /><br />&quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.<br /><br />Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.<br /><br />However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.<br /><br />If this firm creates another firm which sells products online then it would be permissible.<br /><br />The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&rdquo;.<br /><br />According to Pinakiranjan Mishra of Ernst &amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&quot; said Mishra.<br /><br />Even DIPP echoes this point. &quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &quot;We can't apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&quot;<br /><br />Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&quot; <br /></div>',
	'lang' => 'English',
	'SITE_URL' => 'https://im4change.in/',
	'site_title' => 'im4change',
	'adminprix' => 'admin'
]
$article_current = object(App\Model\Entity\Article) {

	'id' => (int) 17107,
	'title' => 'Retail firms with FDI can’t sell online',
	'subheading' => '',
	'description' => '<div align="justify">
-The Indian Express<br />
<br />
<em>DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities<br />
</em><br />
The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.<br />
<br />
However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.<br />
<br />
&quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.<br />
<br />
Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.<br />
<br />
However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.<br />
<br />
If this firm creates another firm which sells products online then it would be permissible.<br />
<br />
The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&rdquo;.<br />
<br />
According to Pinakiranjan Mishra of Ernst &amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&quot; said Mishra.<br />
<br />
Even DIPP echoes this point. &quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &quot;We can't apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&quot;<br />
<br />
Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&quot; <br />
</div>',
	'credit_writer' => 'The Indian Express, 22 September, 2012, http://www.indianexpress.com/news/retail-firms-with-fdi-cant-sell-online/1006095/0',
	'article_img' => '',
	'article_img_thumb' => '',
	'status' => (int) 1,
	'show_on_home' => (int) 1,
	'lang' => 'EN',
	'category_id' => (int) 16,
	'tag_keyword' => '',
	'seo_url' => 'retail-firms-with-fdi-cant-sell-online-17235',
	'meta_title' => null,
	'meta_keywords' => null,
	'meta_description' => null,
	'noindex' => (int) 0,
	'publish_date' => object(Cake\I18n\FrozenDate) {},
	'most_visit_section_id' => null,
	'article_big_img' => null,
	'liveid' => (int) 17235,
	'created' => object(Cake\I18n\FrozenTime) {},
	'modified' => object(Cake\I18n\FrozenTime) {},
	'edate' => '',
	'tags' => [
		(int) 0 => object(Cake\ORM\Entity) {},
		(int) 1 => object(Cake\ORM\Entity) {}
	],
	'category' => object(App\Model\Entity\Category) {},
	'[new]' => false,
	'[accessible]' => [
		'*' => true,
		'id' => false
	],
	'[dirty]' => [],
	'[original]' => [],
	'[virtual]' => [],
	'[hasErrors]' => false,
	'[errors]' => [],
	'[invalid]' => [],
	'[repository]' => 'Articles'

}
$articleid = (int) 17107
$metaTitle = 'LATEST NEWS UPDATES | Retail firms with FDI can’t sell online'
$metaKeywords = 'FDI,Retail'
$metaDesc = '
-The Indian Express

DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities

The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer...'
$disp = '<div align="justify">-The Indian Express<br /><br /><em>DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities<br /></em><br />The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India.<br /><br />However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure.<br /><br />&quot;E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,&rdquo; the department of industrial policy and promotion (DIPP) clarified in a statement.<br /><br />Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. &ldquo;The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,&rdquo; a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added.<br /><br />However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed.<br /><br />If this firm creates another firm which sells products online then it would be permissible.<br /><br />The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that &quot;retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading&rdquo;.<br /><br />According to Pinakiranjan Mishra of Ernst &amp; Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. &quot;The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India,&quot; said Mishra.<br /><br />Even DIPP echoes this point. &quot;100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,&rdquo; a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: &quot;We can't apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores.&quot;<br /><br />Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: &quot;FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI.&quot; <br /></div>'
$lang = 'English'
$SITE_URL = 'https://im4change.in/'
$site_title = 'im4change'
$adminprix = 'admin'

include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51

Retail firms with FDI can’t sell online

-The Indian Express DIPP officials cite regulatory issues, problems in checking inter-state transactions in e-commerce activities The new rules that allow foreign retail chains to pick up to 51% stake in Indian supermarkets will not apply to e-commerce companies in the business-to-consumer (B2C) space. This means while the US-based retail firm Walmart can pick up a 51% stake in Bharti Retail, the JV firm cannot sell its products online through that entity. Similarly, domestic online retailer like Flipkart cannot have foreign direct investment in its B2C entity and US-based online retail firm Amazon cannot set shop in India. However, if Amazon wants to set shop in the country it would have to change its format and do it in the brick and mortar form or be a part of some multi-layering corporate structure. "E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in business-to-business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well,” the department of industrial policy and promotion (DIPP) clarified in a statement. Explaining the reason for not allowing FDI in B2C e-commerce, DIPP officials said that it is due to problems in regulation as well as restrictions in the policy such as the states where it can be applicable. “The multi-brand retail norms require that 50% of the investments be made in the back-end infrastructure. It would be difficult to monitor their investment break-up. Further, since the option to allow FDI in retail would lie with the state governments, it would be difficult to check inter-state transactions in e-commerce activities,” a DIPP official said. Even the mandatory 30% local sourcing by the firms having FDI would be difficult for pure-play e-commerce firms, the official added. However, analysts said that e-commerce firms can still find a way to have their operations in the country by creating a multi-tier corporate structure. For instance, if a foreign and an Indian retailer have a 51:49 JV, then the firm would be categorised as Indian-owned and managed. If this firm creates another firm which sells products online then it would be permissible. The matter gained significance after the government notified its September 14 decision, allowing up to 100% foreign direct investment (FDI) in single-brand retail and up to 51% FDI in multi-brand retail with a rider that "retail trading, in any form, by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of single or multi-brand retail trading”. According to Pinakiranjan Mishra of Ernst & Young, the current business model for both home-grown or foreign e-Commerce retailers can continue. "The notified policy is not blocking that at all. Therefore, it is only the question of how such firms structure their business entities in India," said Mishra. Even DIPP echoes this point. "100% FDI is allowed in warehousing and technical support (back-end) and this is where the e-commerce firms can invest in,” a DIPP official said. Explaining the reasons for blocking retail trading via e-commerce through the notification, DIPP official said: "We can't apply the FDI norms to e-commerce firms because it is difficult to enforce them on these virtual stores." Certain home-grown e-commerce ventures though expect more clarity on this matter in the near future. According to Abhishek Goyal, CEO of Fashionandyou.com: "FDI would have given us a good opportunity by bringing in funds and expertise, but now we just have to wait for it. Right now we have a cushion and are a well financed company. But eventually we would expect the government to make the policy more flexible and open the markets for e-commerce. Especially if more states start adopting FDI."