Photo of Ritika Rathi

Partner in the Corporate Practice at the Delhi office of Cyril Amarchand Mangaldas. Ritika practice covers diverse areas of corporate commercial laws including advising on inbound and outbound investments, joint ventures, private equity, business acquisition and restructuring, along with corporate and regulatory advisory. She can be reached at ritika.rathi@cyrilshroff.com

Amidst much anticipation, the Department of Industrial Policy and Promotion released Press Note 3 (PN3) in March of 2016 (now incorporated in the Consolidated FDI Policy dated June 7, 2016) to clarify its stand on the subject of foreign direct investment (FDI) in e-commerce. This post is an attempt to highlight certain issues arising out of PN3 in relation to the use of the term ‘services’, which may not only impact the e-commerce players but may also extend to other businesses which utilize electronic platforms.

Through the release of PN3, the Department clarified its stance on two key aspects: (a) FDI is permitted in the ‘marketplace model of e-commerce’ under the automatic route (i.e., without prior approval); and (b) FDI is prohibited in the ‘inventory based model of e-commerce.

Continue Reading The E-commerce Press Note – Some Unanswered Questions