There has been a lot of hue, cry, debate, discussions regarding FDI clarification in ecommerce maketplaces.
But who is regulating them?
Banks use to charge exorbitant interest on loans, minuscule interest on deposits, charge exorbitant transaction charges etc etc. Reserve Bank of India, formed through a statute of Central Government, changed this and created standards, regulations, monitoring bodies etc in order to creating a level playing field. And banks started getting rated on the basis of their service and relationship management.
Another example, Insurance company send foot soldiers in the name of insurance agent instead of full time employees and asks you to take policy, pay premium on trust that in future they will compensate loss. What if, they would charge you 1 crores as premium for a policy of 1 lakh policy? And then force you to take such a policy in order to get your house/car etc registered with Municipal Corporation / RTO.
Such a practice is not possible because of IRDA.
What about your electricity company, it decides to charge 3x power charges from tomorrow onwards. What will you do? 1) Pay up? 2) Stop consuming electricity? what about money spent on appliances? 3) Start your own powerplant.
CERC makes sure that electricity companies do not carry out such practices.
It is because of TRAI that we have stopped paying incoming charges on mobile calls. That every person in the country is now trusting telecoms with a cellular connection to run their mobile phones.
SEBI is the most known regulatory body.
There are various regulatory bodies in this country. All bodies have been formed in those industries where there is public trust and money involved. The institutions to whom the regulations apply, have to follow these norms in order to carry out business in India.
As a policy, FDI is regulated in all these industries which are having a regulatory body.
Now that GOI has clarified FDI in ecommerce marketplaces, it should also bring in regulation to control the marketplaces.
All India Online Vendors Association has highlighted the challenges on its forum www.aiova.org/forum