RBI vide Notification No. FEMA.387/2017-RB  on Thursday, March 09, 2017 notified Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2017 which shall come into force from the date of publication in Official Gazette. Vide said notification, in Regulation 2, new sub-regulation (ii E) has been inserted and in Schedule 1, entry 16.2 has been amended regarding E-Commerce.

• Regulation 2(ii E): Definition of E-commerce, E-commerce entity, Inventory based model of e-commerce and Market place model of e-commerce has been explained.
• Schedule 1 Entry 16.2: 100% FDI under automatic route for B2B E-Commerce activities and Market place model of e-commerce. However, FDI is not permitted in inventory based model of e-commerce.
• Also, Sale of services through e-commerce shall be under automatic route subject to the sector specific conditions.

The said Notification can be accessed from the following link:FEM(TrfrOrIssueOfSecurity)4thAmndReg2017_09.03.2017