FDI

The latest FDI rules came into effect on Feb 1

Myntra has been bringing several new sellers on board: report

The company is believed to have more than 14 private label brands

Amazon’s shares fell by 5.38% to $1626.23, losing $45.22 Bn in market capitalisation

Walmart’s share price were down by 2.06% to $93.86 on NYSE, losing $5.7 Bn in market cap

Since Feb 1,  Amazon and Flipkart, have seen sales fall by as much as a third

The latest changes in ecommerce FDI policy will come into effect from February 1, 2019

Amazon and Flipkart have sought an extension to the deadline

A Medical Innovation Fund should be created to promote innovation, say startups

Similar to the ecommerce sector, they want FDI norms in epharma to be relaxed

The government should take measures to check increasing medical inflation as well

In September 2018, Amazon and Samara Capital agreed to acquire More from Aditya Birla Group

CCI sent a notice to Samara Capital questioning Amazon's role in More if the joint takeover bid is approved

CCI raised questions on how the deal will comply with the updated FDI norms

DIPP on December 26, 2018, introduced certain changes to the 2017 policy governing FDI in the ecommerce sector

Policy changes in the garb of clarifications have the potential to change the dynamics of Indian ecommerce space

The changes are likely to impact the core business model of the likes of Amazon and Flipkart

The companies are reportedly discussing a wider agreement as they finalise the deal

With a call-and-put option, Amazon may call for Biyani’s stake in Future Retail over the long-term

Through the FPI route, Amazon has already picked up stakes in Shoppers Stop and Aditya Birla Retail's ‘More’

Japanese investors invested over $8 Bn into the Indian startup ecosystem between 2014 and mid-2018, according to Inc42 Datalabs

In terms of FDI, UK ranks third after the US and Japan as an investor in India

In 2017, Chinese internet companies invested $5.2 Bn (INR 378.1 Bn) in 30 Indian companies

Niti Aayog CEO Amitabh Kant talks about having only one agency and not ministries or agencies to deal with ecommerce

He stressed on an ecommerce policy that ensures consumer protection

Ecommerce has the potential to generate a vast number of new jobs in the economy, says Kant

• The notice was issued in a public interest litigation (PIL) filed by NGO Telecom Watchdog
• The petition said that the duo had violated FDI norms and circumvented them by routing popular products at cheaper prices through proxy controlled sellers
• The petition also said that the two companies had circumvented Press Note 3

• Small ecommerce players believe that the new rules will dissuade “malicious practices” carried out by certain platforms for “proxy sellers”
• Several complaints have emerged against ecommerce leaders Flipkart and Amazon of circumventing the norms under Press Note 3
• Press Note 3 disallows one seller from selling more than 25% of the total sales on the marketplace

The Special Group Will Comprise Of Officials From The Industry Department And Enforcement Directorate