New Delhi, Jan 28 (KNN) Opposing any extension of February 1 deadline for online marketplaces to comply with FDI rules, various domestic e-commerce companies like Snapdeal and ShopClues along with social commerce startups including Shop101 have come together to oppose such extension.

The Confederation of All India Traders Association (CAIT) has been opposing such deferment/extension or changes in the said policy on traders’ behalf.

But now, for the first time smaller online retailers have voiced their concerns to the government and have written to the Department of Industrial Policy and Promotion (DIPP) and commerce minister Suresh Prabhu, lauding the government for clarifying the rules on foreign direct investment in the e-commerce sector as well as opposing any extension.

Plugging some of the loopholes in the Foreign Direct Investment (FDI) norms on e-commerce, on December 26, 2018, government tightened e-commerce policy to check misuse by big e-commerce players.

The changes are set to come into effect from February 1, 2019.

However, giant e-commerce players sought deferment of the February 1 deadline as these changes would require changing their business model and an overhaul of their inventories.

Amidst reports of likely deferment of e-commerce FDI policy, CAIT has started e-mail campaign to push for no-deferment of February 1 deadline for implementing the Foreign Direct Investment (FDI) policy.