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of <h1>India Revises FDI Rules: 100% Allowed in E-commerce Marketplaces, Restrictions on Inventory Models, Effective Feb 2019.</h1> The Government of India revised its Foreign Direct Investment (FDI) policy for the e-commerce sector, allowing 100% FDI under the automatic route for marketplace-based models but prohibiting FDI in inventory-based models. E-commerce entities are restricted to Business to Business (B2B) transactions and must not influence product prices or mandate exclusive sales on their platforms. Marketplace entities can offer support services but cannot control inventory. Sellers must be responsible for product delivery and guarantees. Compliance with these guidelines must be certified annually to the Reserve Bank of India. These changes are effective from February 1, 2019.
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