The government today permitted 100 per cent FDI in the market place model of e-commerce retailing under automatic route. The decision is aimed at attracting more foreign investments. As per the guidelines issued by the Department of Industrial Policy and Promotion (DIPP) , the FDI has not been allowed in inventory-based model of e-commerce.<br/><br/>At present, global e-tailer giants like Amazon and Ebay are operating online marketplaces in India while homegrown players like Flipkart and Snapdeal have foreign investments even as there were no clear FDI guidelines on various online retail models. To bring clarity, the DIPP has also come out with the definition of e-commerce, inventory-based model and<br/>market place model. <br/><br/>According to notification, an e-commerce firm, however, will not be permitted to sell more than 25 per cent of the sales affected through its market place from one vendor or their group companies.