India to Introduce Direct Selling Regulation Act
INDIA AT THE EDGE OF DIRECT SELLING REGULATION ACT
Written by Bernerd
June 05, 2011.
International Council for Direct Selling Industry (ICDSI) Chief Councillor Dr.Fin Hamilton is in India on a 4 day visit to New Delhi, Mumbai & Bangalore.
Yesterday June 04, he was received at New Delhi by Officials from Ministry of Finance, later in the day he met Mr.Pranab, Hon’ble Minister for Finance at his residence. He discussed with the finance minister regarding the long pending Direct Selling Regulation Act, about the reasons why Indian Government was skeptical regarding passing the bill.
In the discussion, Mr.Pranab stated the experience the Indian Government and Public had by the fraudulent schemes in the name of Multi Level Marketing. Meanwhile, The team of ICDSI shared the Indian Financial Data of Direct Selling Industry available with ICDSI.
Sunday, June 05 2011, Dr.Fin Hamilton met the honorable Prime Minister of India , Dr.Manmohan Singh at his residence along with Hon’ble Finance Minister of India Mr.Pranab. The Meeting went on for more than 2 hours and later in the evening Dr.Fin briefing the media said that the prime minister is serious about the regulation of direct selling industry in India and has agreed for speedy process of Direct Selling regulation in India, later a press release said the following points were discussed at the meeting:-
1. ICDSI will help the Indian Government drafting the legislation on Regulation of Direct Selling.
2. A panel of 12 Councillors from all over the world will travel to India in September for the legislation draft.
3. Indian Government is planning to introduce the Direct Selling Regulation Act in the First Parliament Session of 2012.
4. An Independent regulating authority will be formed, which will work under the guidelines of Ministry of Finance and RBI.
5. Foreign Direct Investment should be allowed in Direct Selling.(Suggested)
6. Prime Minister said, they will not allow 100% foreign investment will not be allowed in direct selling industry.
7. a set of guidelines will be framed which needs to be followed by all direct selling companies
8. From 2012, all direct selling companies needs to procure a special license.
9. All direct selling companies will have to declare their Annual financial results if the Direct Selling Regulation Act is formed.
10. A special tax of 13% will be imposed on the sale price of the goods sold through direct selling in addition to the existing taxes
June 06, 2011.
Dr. Fin Hamilton, Chief Councillor of International Council for Direct Selling Industry (ICDSI) met the officials from Reserve bank of India and presented the Direct Selling Financial structure of various countries and member companies.
More Details Awaited