Store One Retail India (up 12.71%), Provogue (India) (up 8.53%), Pantaloon Retail India (up 6.41%), Koutons Retail India (up 4.96%), V2 Retail (up 4.96%), Shoppers Stop (up 2.33%) and Trent (up 1.97%), edged higher.
The BSE Sensex was up 305.63 points, or 1.67% to 18,654.88.
The permission for 51% FDI in multi-brand retail trading (MBRT) is subject to specified conditions. The policy provides that it would be the prerogative of the state governments to decide whether and where a multi-brand retailer, with FDI, is permitted to establish its sales outlets within the state. Therefore, implementation of the policy is not a mandatory requirement for all states, the government has said.
The government has stated that retail trading in any form by means of e-commerce, would not be permissible, for companies with FDI, engaged in the activity of multibrand retail trading. The minimum amount to be brought in by a foreign investor would be $100 million in multi-brand retail, and outlets may be set up only in cities with a population of more than 10 lakh. At least, 50% of FDI should be invested in 'back end infrastructure' within three years of the first tranche.
The government has notified that 30% sourcing from Indian companies, in case of single-brand retail, and from MSMEs, for multi-brand retail, will have to be over the first five years and on an annual basis thereon.
Only 10 states and Union Territories have so far conveyed to the Centre their agreement to open FDI in the multibrand retail. These are Andhra Pradesh, Assam, Delhi, Haryana, Jammu & Kashmir, Maharashtra, Manipur, Rajasthan, Uttarakhand, Daman & Diu and Dadra and Nagar Haveli.
The notification comes a week after the Cabinet Committee on Economic Affairs (CCEA) cleared 51% FDI in multi-brand retail, subject to the states approval.
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