Foreign investors should divest 26 p.c. equity in e-com

By Our Special Correspondent

NEW DELHI, AUG. 29. The Government has clarified that foreign investors in e-commerce activities will have to divest 26 per cent of equity to the Indian public within five years of business.

It was also stated that foreign direct investment up to 100 per cent in e-commerce activities will remain under the automatic route and will not need prior approval by the Government.

In a press note issued here, the Union Commerce and Industry Ministry said FDI up to 100 per cent for e-commerce activities is subject to the condition that companies listed in other parts of the world will divest 26 per cent of their equity to the Indian public within five years. This is applicable only to cases where the foreign equity stake is over 74 per cent and up to 100 per cent.

Further, it says these companies will engage only in business to business (B2B) e-commerce and not in retail trading.

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Section  : Business
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