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RBI Notification dt. 09.03.2017 notifying Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2017:

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

 

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