“While we are still trying to understand the full implications, we fear that these restrictions will have a far-reaching negative impact both on US investments and on Indian consumers,” said USAIC president Nisha Desai Biswal, according to media reports.
The new policy bars e-commerce companies from entering into agreements for exclusive sale of products. It also bars these companies from selling products of the companies in which they have stake.
“An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity,” said the commerce and industry ministry statement.
“Cash back provided by group companies of marketplace entity to buyers shall be fair and non-discriminatory. For the purposes of this clause, provision of services to any vendor on such terms which are not made available to other vendors in similar circumstances will be deemed unfair and discriminatory,” the statement said.
Further, e-commerce marketplace entities would be required to furnish a certificate along with a report of statutory auditor to Reserve Bank of India, confirming compliance of guidelines, by September 30 of every year for the preceding financial year. (RKS)