The Committee of Secretaries recommends 51% FDI in multi brand retiling

23 Jul 2011 Evaluate

The Committee of Secretaries (CoS) has recommended for opening, politically sensitive multi-brand retail sector for Foreign Direct Investment (FDI) and has suggested FDI up to 51% in multi brand retail sector. However, this permission is with conditions, the minimum investment should be $ 100 million and not less than the 50% of the investment have to dedicate for development of back end infrastructure such as warehousing and cold storage. The CoS had suggested that the FDI in multi brand retailing should be allowed only in 36 cities which have population of over 1 million.

The recommendation of CoS has virtually opened the doors for global multi-retailing giants like WalMart and Carrefour, which have been lobbying hard, pressuring government for opening the India’s retail sector. Currently, 100% FDI is allowed in Cash and Carry wholesale trade that is business to business, and 51% in single brand retail. Government had not allowed FDI in multi brand retail till yet.

Industry and experts have welcomed the recommendations of CoS, and expect that the opening of retail sector would attract more FDI in country and will help to grow the Indian retail sector which has been historically dominated by unorganized sector.

However, before becoming it a policy, it has to get approval from cabinet, and then for the final decision it will be placed in parliament, where this recommendation is expected to face stiff opposition from political parties from UPA and opposition. Political parties within UPA government and opposition has been against of opening the sector for FDI, due to fear of huge job loss of small shopkeepers from unorganized sector.

The government has been pushing for opening the sector for FDI in the backdrop of increasing food inflation. In July 2010, the Department of Industrial Policy and Promotion (DIPP) has issued a discussion paper on this issue for generating debate. Inter Ministerial group, under the chairmanship of Chief Economic Adviser Kaushik Basu, had already moved a draft proposal for opening the sector for FDI, arguing FDI in organized retailing would help in controlling food prices. Within the government, the Planning Commission and Ministry of Agriculture are ready for 51% FDI in Multi-Brand Retail sector. However, ministry of Micro, Small and Medium enterprises has recommended that government to limit FDI in sector to 18%.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.