Government permits 100% FDI in Single-Brand Retail Trade

-
Government permits 100% FDI in  Single-Brand Retail Trade


Finally, the Department of Industrial Policy and Promotion (DIPP), vide its Press Note No. 1 of 2012 dated January 10, 2012, has finally permitted 100% FDI in Single Brand Retail Trade under Government approval as against the current limit of 51% FDI. Earlier Foreign Direct Investment (FDI), in retail trade in single brand product retail trading was up to 51% is permitted, subject to certain conditions.

The Government of India has reviewed the extant policy on FDI and decided that FDI, up to 100%, under the government approval route, would be permitted in Single-Brand Product Retail Trading, subject to specified conditions, as detailed below.

(a) Products to be sold should be of a 'Single Brand' only.
(b) Products should be sold under the same brand internationally l.e. products should be sold under the same brand in one or more countries other than India.
(c) 'Single Brand' product-retail trading would cover only products which are branded during manufacturing.
(d) The foreign investor should be the owner of the brand.
(e) In respect of proposals involving FDI beyond 51%, mandatory sourcing of at least 30% of the value of products sold would have to be done from Indian 'small industries/ Village and cottage industries, artisans and craftsmen'. 'Small industries' would be defined as industries which have a total investment in plant & machinery not exceeding US $ 1.00 million. This valuation refers to the value at the time of installation, without providing for depreciation. Further, if at any point in time, this valuation is exceeded, the industry shall not qualify as a 'small industry' for this purpose. 'Village industry' shall have the meaning as defined under the Khadi and Village Industries Commission Act, 1956, as amended from time to time. The compliance of this condition will be ensured through selfcertification by the company, to be subsequently checked, by statutory auditors, from the duly certified accounts, which the company will be
required to maintain.

Comments

Post a Comment

Please share your valuable comments and thoughts on this article. Thanks!

Popular posts from this blog

Responding to Software Review Audits- Good tips on how to handle audit requests and settlements

-
Image
Managing Audits to Prevent Unauthorized Disclosures by Technology Teams by Keli Johnson Swan in Blogs , Software Audits Disputes involving software usage are on the rise for businesses of all sizes. In some cases, technical teams respond to a software publisher’s or a third party’s audit request and provide significant amounts of data without notifying anyone on the corporate governance or the legal teams.  It is critical for those teams to evaluate the publisher’s legal ability to audit, and to identify the data the publisher is entitled to request. It is not uncommon for the legal team to discover the existence of a software audit or license verification after the company has received a demand for damages arising from alleged over-usage of software. Often, employees responding to an audit request do not understand the request and provide inaccurate or incomplete information. Once this information is disclosed, it can expose the business to a damages cla
Read more

"What is the right thing to do?" What's The Difference Between Compliance And Ethics?

-
Image
  What's The Difference Between Compliance And Ethics? Bruce Weinstein, Ph.D. Contributor Customized ethics keynotes, training, and online courses for CE credit May 9, 2019, 01:19pm EDT  TWEET THIS High-character leaders ask, "What is required of me?" but they don't leave it at that. Ethical leaders also ask, "What is the right thing to do? How would an honorable person behave in this situation?" I've noticed some confusion about the roles that ethics and compliance play in organizations. This confusion arises, in part, from the way these two fields are identified. Some companies have only a compliance department. Others have a compliance  and  ethics (or ethics and compliance) department. Some companies have a Chief Ethics Officer separate from compliance. To get some clarity on these crucial roles, I asked seven leaders who are involved in both ethics and compliance to explain the similarities and differences as they saw them. I'll present their vi
Read more

Influencers in the workplace: Can promotional work on social media be regarded as moonlighting?

-
Image
  Lawtons Africa Jun 9, 2023 4 min read Influencers in the workplace: Can promotional work on social media be regarded as moonlighting? Author: Andile Mphale– Candidate Attorney Supervised by: Lavery Modise– Consultant https://www.lawtonsafrica.com/post/influencers-in-the-workplace-can-promotional-work-on-social-media-be-regarded-as-moonlighting The use of social media has many benefits; one of them being the creation of work and income opportunities, such as doing promotional work on social media. Promotional work on social media has also given rise to the term “influencer”. An influencer is someone with a substantial following or a notable online presence, who can influence potential consumers into purchasing a product or service through social media endorsements or recommendations and receive a reward for that. There are influencers who do promotional work on social media on a full-time basis and make a living from it. There are also influencers who do promotional work on social med
Read more