Companies & Sectors
Foreign equity will propel e-commerce retailing
New Delhi : The e-commerce sector in India is poised for multi-fold growth, with the government allowing 100 percent foreign equity in e-retail, trade and industry experts said on Wednesday.
 
"Allowing 100 percent FDI in e-commerce will enable companies and investors to draw long-term plans with certainty as the government has dispelled ambiguities," Ficci e-commerce committee co-chair Pawan Kaul said in a statement here.
 
The government on Tuesday permitted 100 percent conditional foreign equity in the retail e-commerce segment when the products sold are also manufactured in the country, as also for single-brand foreign entities.
 
Terming this a progressive initiative, Federation of Indian Chambers of Commerce and Industry (Ficci) secretary general A. Didar Singh said the conditions under which foreign equity was allowed would help in attracting more investment into the country.
 
"Clarity in the FDI policy and the market potential will attract more overseas investment, create more jobs and provide stimulus to manufacturing," Singh said.
 
Singh, however, wanted the central government to prevail upon states to abolish entry taxes to prevent double taxation, which was affecting the industry's growth.
 
Leading American research and advisory firm Gartner research director Sandy Shen said allowing foreign equity in the e-commerce industry would make it easier for all stakeholders, global and local, to compete online under well-defined rules of the game, especially on pricing.
 
"Foreign equity in e-commerce retailing, however, will not reduce competition in the market where players are in a land-grabbing mode to increase customers and merchants," Shen said.
 
More than getting foreign equity, present and potential e-commerce players will have to make their platforms more appealing with better logistic, payment and purchase experience.
 
"Price pressures will remain for merchants as its primary reason for people to shop online. Even when marketplaces are not allowed to influence pricing, there are still levers they can use," Shen noted.
 
GreenDust founder and chief executive Hitendra Chaturvedi said the move would strengthen the investor confidence in the Indian economy and help create cleaner e-commerce models.
 
Noting that the riders on foreign equity had removed confusion, IndiaMart founder and chief executive Dinesh Agarwal said though business-to-business (B2B) had 100 percent FDI, clarity in the business processes would facilitate similar investments in business-to-customer (B2C) segment.
 
"The nascent SME sector may fall prey to the predatory pricing and the 25 percent limit for a single player is high and may not be in the interest of the sector," Agarwal claimed.
 
Echoing views of other industry players, ShopClues co-founder Sanjay Sethi said foreign equity in e-retailing would benefit consumers, help in making more goods in the country and create more jobs for locals.
 
"Clarity on the definition of e-commerce and marketplace model will allow many national and international players to enter the industry through marketplace route," Sethi pointed out.
 
Observing that foreign investment was a key component to drive the 'Make in India' campaign, CareOnGo co-founder Aditya Kandoi said the government had helped lift the bureaucratic mindset around the business.
 
"The initiative will give push to the spirit of start-up culture. The 25 percent cap on total sales and other rules will help pave a level-playing field and curb predatory pricing," Kandoi added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Corporates raise about 10 times more funds via IPO in FY 2015-16
Mumbai : Corporates have raised about 10 times more funds at Rs.14,508.11 crore via Initial Public Offer (IPO) in the financial year 2015-16 compared to FY 2014-15, with 22 firms making their debut on the exchange platforms, the National Stock Exchange (NSE) said.
 
"In spite of volatile secondary market, fund raised through IPO issuances in FY 2015-16 have witnessed an increase of more than 10 times of FY 2014-15. Last year, total money raised was Rs.1,418.21 crore," NSE said in a release.
 
Among the listed entities, infrastructure companies dominate the chart with about 33 percent of the entities representing the sector.
 
"As many as 21 out of 22 entities were oversubscribed during the current FY, while 15 reported listing gain. Apparently, most of the offerings were from corporates who had sizable private equity fund in their holding structures," it said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Follow Centre's guidelines in accident cases, SC tells states
New Delhi : The Supreme Court on Wednesday directed all the states to follow the Centre's guidelines that encouraged eyewitnesses in road accidents to report to police and also help survivors with medical treatment.
 
The apex court also directed the Centre to publish its guidelines notified last year to ensure that all those who help accident victims/survivors were not harassed by the police.
 
An apex court bench comprising Justice V. Gopala Gowda and Justice Arun Mishra said that a witness who calls police to report an accident cannot be compelled to disclose his or her identity or contact details.
 
The Centre's guidelines, which were advisory in nature, now have the apex court's backing, making it obligatory for the states to follow them.
 
The court ruling came on a public interest litigation filed by non-governmental organisation 'SaveLife Foundation' that sought protection for good Samaritans from legal and other hassles while helping accident victims.
 
Under the guidelines, all hospitals are mandated to clearly state in English and in local languages that any person who brings a road accident victim for emergency treatment will not be asked to stay back or give money for the treatment of the injured.
 
Any doctor who declines to treat a road accident victim brought by an eyewitness will be guilty of "professional misconduct".
 
Any hospital not complying with the guidelines would be penalised by the State government.
 
In order to insulate good Samaritans from getting entangled in legal complications, the guidelines say that police will be allowed a single session with such a person provided he or she chooses to disclose identity of their own volition.
 
A witness will be questioned through videoconferencing if it was inconvenient for him or her to personally come to record their eyewitness account.
 
The court directed the Centre that the guidelines be put in a standard format within 30 days for questioning of such a witness so that there is no danger of intimidation or harassment.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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