Recently the Ministry of Commerce & Industry has issued Press Note No. 2 (2018) which lays out the new operating guidelines to be applicable on companies offering market based model of E-commerce. The purpose of this note is to identify the business practices that need to change on account of these rules and how it impacts the E-commerce entities.
Equity Participation in B2C
Like in past the new rule explicitly prevents an E-commerce entity (running a market-place model) to hold any equity into vendors selling products using its marketplace (Clause 5.2.15.4 iv & v).
