Sitharaman has informed that the current regulation bans FDI business in ecommerce and multi-brand retail.
The current ruling goverment has been undecided whether to ban or not FDI, with recent rumours indicating that FDI might be allowed for ecommerce.
Recently, the Enforcement Directorate has charged Flipkart with violation of Foreign Exchange Management Act (FEMA) regulation.
Therefore, Flipkart has changed its B2C ecommerce strategy and has started operating like a marketplace, with different sellers fulfilling customer orders in order to avoid the issue of violating FDI norms in multi-brand retail.
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