Walmart-owned Flipkart has begun incentivizing sellers to pass on additional discounts to customers enrolled in its loyalty programme Flipkart Plus by offering the vendors non-cash credits, even as the Indian government clamps down on what it describes as “predatory pricing” on e-commerce platforms. As part of a new promotional programme on Flipkart, vendors choosing to offer a 5% additional discount to consumers will receive as much as 50% of discount value back as non-cash credit note.  The move is significant as Indian foreign direct investment (FDI) rules prohibit foreign-owned e-commerce marketplaces from directly or indirectly influencing the price of products sold on their platforms.

Publication: The Economic Times

Date: 16 July, 2019

Regulatory cholesterol is one of the reasons for start-ups to lose heart—the failure rate of start-ups is quite high, but closure can take more than two years. The government’s intent to further simplify procedures, reduce red-tape and make the best use of technology was clearly set out. However, there was no reference of a refreshing, revolutionary move that is already on the cards. A draft Cabinet note has reportedly been circulated last month on the National Ease of Doing Business Policy, where, for the first time, we see the government holding the bureaucrats accountable for the compliance requirements they place on businesses.

Publication: Financial Express

Date: 16 July, 2019

As the deadline for e-commerce marketplaces to submit their reports proving compliance with the latest FDI guidelines approaches, the Reserve Bank of India is soon expected to come up with a mechanism for submission of such reports in line with the norms announced by the Industry Department in December last year, a senior government official said. Currently, India allows 100 percent foreign direct investment (FDI) in e-commerce but has disallowed inventory model for the same.

Publication: The Indian Express

Date: 16 July, 2019