<h1>New FDI Policy: 100% FDI Allowed in E-commerce Marketplace Model, Not Inventory-Based. Effective February 1, 2019.</h1> The revised policy on Foreign Direct Investment (FDI) in the e-commerce sector clarifies that 100% FDI is allowed automatically in the marketplace model, but not in the inventory-based model. E-commerce entities can only engage in Business to Business (B2B) activities. Marketplace entities must not control inventory, and vendors cannot sell exclusively on their platforms. They must also ensure fair and non-discriminatory services, including logistics and payments. Compliance with these guidelines must be annually reported to the Reserve Bank of India. The policy is effective from February 1, 2019.