E-commerce FDI norms should be applied on domestic online players also: CAIT
The Confederation also asked the minister to set up an independent regulatory authority for the sector.
New Delhi: The foreign direct investment (FDI) norms related to e-commerce companies should be implemented on domestic online players also to restrict them from adopting any unethical business practices, traders' body CAIT said on Monday.
In a communication to Commerce and Industry Minister Suresh Prabhu, the Confederation of All India Traders (CAIT) also urged the minister to immediately release the proposed policy for the sector. The ministry is working on the policy and would soon come out with a draft for public views.
"The FDI norms as spelled out in the policy should also be made applicable on domestic e-commerce players as well to restrict them from adopting any unethical business practices and remain at par with other e-commerce players," it said.
Tightening norms for e-commerce firms having foreign investment, the government barred online marketplaces such as Flipkart and Amazon from selling products of companies where they hold stakes and banned exclusive marketing arrangements that could influence product price.
The Confederation also asked the minister to set up an independent regulatory authority for the sector. Further, it alleged that certain associations are criticising the revised FDI norms and the government should not "bow down" under any kind of pressure.