China’s Shein to have no equity investment in its tie up with Reliance Retail: Official

News Snapshot:

Chinese fast fashion e-commerce platform Shein’s agreement with Reliance Retail Ventures Limited (RRVL) would not require FDI approval as Shien will have no equity investment and the new operations will be run by a company entirely owned by RRVL, government officials said on Friday. Officials, however, clarified that an approval will be required under press note 3 if Shein plans to invest in India. Amid rising tension with China, the government had introduced an amendment to the FDI Policy in April 2020 under provisions of the press-note 3 that was largely aimed at curbing opportunistic takeovers of local companies by...