On Tuesday, the govt has approved 100 percent foreign investment in marketplace e-commerce companies, formalising rules for the first time for the multi-billion dollar sector.

India’s commerce ministry has said in a notification on Tuesday that it would allow 100 percent foreign direct investment in marketplace e-commerce companies that would also be allowed to provide services including warehousing, inventory and payments processing to merchants.

The notification further said that, however the companies would not be allowed to influence prices of the goods sold on their website, and that not more than 25 percent of goods sold can come from a single merchant.

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