Monthly Archives: December 2012

E-Books Publication Laws In India

E-Books Publication Laws In IndiaThese days a common question that is frequently asked is will e-books kill the bookstores in India? This genuine and interesting question is asked because the e-books publications in India and e-commerce industry are fast becoming popular.

India is encouraging use of information and communication technology (ICT) and this has opened new avenues for the education sector of India. Foreign players have also realised the potential of e-commerce and e-books in India which is emerging as the largest market for e-books in the world.

However, in the zest of earning profits, Indian laws in general and e-retailing laws and regulations of India in particular must not be forgotten. As a matter of fact, Indian government would ascertain beneficiary in Walmart probe. This shows that any intention to flout Indian laws is a real bad idea especially if e-commerce market of India is to be captured.

The legal formalities required for starting e-commerce business in India are now well known. However, legal issues in e-commerce in India are still not clear to many national and international e-commerce business houses and entrepreneurs. For instance, the legal requirements to start an e-commerce website In India are covered by many legislations including information technology act, 2000 (IT Act 2000). However, both national and international e-commerce players are not complying with legal issues of online shopping in India.

FDI in wholesale trading and e-commerce sectors of India under consolidated FDI policy of India 2012 was given a major boost by Indian government. Further, the Parliament of India recently approved FDI in e-commerce sector of India. Thus, it is high time for structuring of investments in e-commerce businesses in India.

Perry4Law and Perry4Law’s Techno Legal Base (PTLB) suggest that e-commerce business houses must keep in mind the specified requirements of cyber due diligence for Indian companies.

Many companies have already found themselves on the wrong side of Indian laws for violating the same. There is no sense in ignoring Indian laws by e-books publishers and distributors when they wish to trap the Indian e-commerce market.

Source: Legal Enablement Of ICT Systems In India.

Indian Government Would Ascertain Beneficiary In Walmart Probe

Indian Government Would Ascertain Beneficiary In Walmart ProbeIn the past a probe against Walmart was ordered by Indian government to ascertain any market access lobbying and foreign direct investment (FDI) violations. However, the mandate of this probe was still not clear.

Now as per media reports the probe against Walmart may include ascertainment of the alleged beneficiaries of the payments made while engaging in industrial lobbying. As per the company the lobbying was made in US for the purposes and territorial jurisdictions of US alone. The company has alleged that it did not utilise any portion of the amount for its Indian business.

The crucial question that has to be ascertained by the investigation officer is whether any portion of the lobbying expenses have been utilised in India and used for the purposes of influencing the decision on FDI by Indian government.

If it is found that Indian entities or individuals were involved in the alleged lobbying expenses then the other terms of reference that are being finalised would be looked at. The government would also look at possible violations of Indian laws including the Prevention of Corruption Act. The Enforcement Directorate is also investigating separately if Walmart has violated the provisions of the Foreign Exchange Management Act by investing in an Indian entity even before foreign direct investment was allowed in the sector.

As on date many e-commerce companies, whether Indian or international, are not complying with e-retailing laws and regulations of India as well. Legal experts have been suggesting that e-commerce regulations must also be enforced rigorously against both national and international e-commerce players.

E-Books Publication In India And E-Commerce Industry

E-Books Publication In India And E-Commerce IndustryE-commerce in India is flourishing. However, many e-commerce players have entered into the arena without much planning, preparation and keeping in mind the legal compliance aspect in mind. Naturally, many of the e-commerce ventures started in the year 2011 have closed down.

Further, consolidation of e-commerce industry of India is also in progress. Many small e-commerce projects have been acquired by larger e-commerce players to consolidate e-commerce segment for their respective industry.

FDI in wholesale trading and e-commerce sectors of India under consolidated FDI policy of India 2012 was given a major boost by Indian government. Further, the Parliament of India recently approved FDI in e-commerce sector of India. Thus, it is high time for structuring of investments in e-commerce businesses in India.

The most important aspects that both national and international e-commerce players must keep in mind is that business structuring of e-commerce in India must be done in a techno legal manner.

The legal formalities required for starting e-commerce business in India are now well established. However, legal issues in e-commerce in India are still not clear to many national and international e-commerce business houses and entrepreneurs. For instance, the legal requirements to start an e-commerce website In India are covered by many legislations including information technology act, 2000 (IT Act 2000). However, both national and international e-commerce players are not complying with legal issues of online shopping in India.

One segment that has tremendous potential in e-commerce industry pertains to educational and books publication sector. Traditional and print form books have dominated market share for long. However, there is a gradual shift towards e-books publication, distribution and e-commerce.

Asian countries, especially India, can offer great commercial benefits to book publishers if they explore e-books publication and distribution in India. However, while doing so these e-book publishers must keep in mind the techno legal requirements that most e-commerce players in India are presently ignoring.

Perry4Law and Perry4Law’s Techno Legal Base (PTLB) suggest that e-commerce business houses must keep in mind the specified requirements of cyber due diligence for Indian companies.  Many companies have already found themselves on the wrong side of Indian laws for violating the same. There is no sense in ignoring Indian laws by e-books publishers and distributors when they wish to trap the Indian e-commerce market.