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CIITA - Draft ND Policy

i Hari Balasubramanian
Category: Business
Date: 23/02/2012
Tags: CIITA, COMPASS, NECTA, ITAO, Channels, National Distributor, OEM , Policy
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CIITA has come out with a draft National Distributor's policy for adaptation by the industry. This debate is for all concerned stake holders to share their views and thoughts before the draft is finalised for publication... The draft policy is hereunder :

Background : National Distributors (ND) have been playing a key role in distributing various ICT products in India since long. Over a period of time, they have implemented several policies and procedures in order to facilitate distribution of ICT products across various parts of the country . In the recent past we have come across several situations, where a ND has directly or indirectly ( via associate company or subsidiary ) sold to end customers and also shared information of customers with their associate company(ies) , preferred partners who also resell the same products as a channel partner or retailer. Channel Partners have been extremely concerned with unfair trade practices of sharing confidential information, giving special consideration to selected partners including associate companies not on the consideration of merit but on other grounds and in not being transparent about related party transactions with adequate disclosures. The Channel community has been one of the key players in getting the ICT penetration across all geographical and economic boundaries of India . Channel companies employ thousands of people in all parts of the country , have made significant contribution by way of tax collections to the exchequer and have played a significant role in developing the ICT business in India. In order to protect the channel community’s interest and long term survival and in implementing best practices, CIITA is coming out with a series of guidelines . This document is a draft policy outlining the roles of NDs. The draft guidelines will be published and circulated for feedback from various players in the industry . All feedback would be received and assimilated within a period of 4 weeks and then the guidelines will be published for adaption by CIITA and other associations who support implementation of best practices and avoiding conflict of interest. Vision CIITA visualises a marketplace in which best practices are implemented such that all players in the ecosystem can coexist and facilitate market growth.

NATIONAL DISTRIBUTOR Definition : A company which has a pan india presence and distributes products of OEMs on an exclusive or non exclusive basis where the OEM Invoices the ND directly or the ND directly imports goods from the OEM.

Guidelines:

1. ND must ensure confidentiality of information provided by channels. Customer data collected through schemes / service centre should be kept confidential and should not be shared /misused for business gains.

2. ND must not engage in ICT business in competition to the channel directly or indirectly through associate companies or subsidiaries and ensure that there is no conflict of interest with the channel community on the products they distribute.

3. Any non compliance will be brought to the notice of the OEM / ND for corrective action.

4. CIITA will be coming out with several other guidelines for the benefit of the industry and you can come forward with your suggestions .

For further information please contact :

Rajiv Poddar : + 91 9831021270

Ranjan Das : + 91 98640 64028

Manoj Lalani : +91 94370 23973

About CIITA : Confederation of Indian IT Associations (CIITA) is an association of associations which has been recently formed by IT associations of several states. Please visit www.ciita.in for further information.

posted by Hari Balasubramanian | suggest edit

Yes

CIITA - Draft ND Policy

No

CIITA - Draft ND Policy

DEBATE

add your argumensts in favor or against the issue

arguments supporting the issue
arguments against the issue

In order to protect the channel community NDs must not do competing business..

posted by Hari Balasubramanian | suggest edit

 

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posted by Hari Balasubramanian | suggest edit

Good way of discussion. Though I am not very expert in this chapter but I think this policy is really essential and good for the fair and smooth practice of trade.  

posted by jainmanoj | suggest edit



ND should be restricted with opening of dealer/retail arm. ND policy really will help curbing the same.

posted by sushil | suggest edit

It should not be restrictive

posted by Hari Balasubramanian | suggest edit

NO BODY HAVE RIGHT TO ASK ANY BUSINESS MAN FOR SHUT DOWN THEIR BUSINESS ON ANY GROUND. THIS IS HIS FUNDAMENTAL RIGHT TO BUSINESS AS PER HIS CHOICE.

posted by JAJODIAPAWAN | suggest edit

Dear president sir , How compass can make ND policy. If compass want to make ND policy than open all India chapter state wise. Otherwise compass have no right to make ND policy. If compass make all India chapter than they can issue guideline to his own member. So I think there is no right to intercept the fundamental right to ask shut down or stop any business activities. Please reply me on this matter what right you have to make ND policy. Sancheti BK

posted by sancheti | suggest edit

Respected Sir,The policy does not cover Regional Distributors & Principal Companies, while 75% of our Compass Members are affected by them. They are also having their shops in front of their dealers shop. Principal Companies collect the data for giving backends & misuse them. The Policy should not be partial. We welcome the step taken by CIITA, but all should be covered to sort out the matter for once & all.

posted by premierinfotech | suggest edit

Discuss

got some issues? Discuss with the community members

I am

 

Respected Sir,The policy does not cover Regional Distributors

Posted by premierinfotech on 25/02/2012 at 12:24 PM

0 likes  Reply

 

Dear president sir , How compass can make ND policy. If compass want to make ND policy than open all India chapter state wise. Otherwise compass have no right to make ND policy. If compass make all India chapter than they can issue guideline to his own member. So I think there is no right to intercept the fundamental right to ask shut down or stop any business activities. Please reply me on this matter what right you have to make ND policy. Sancheti BK

Posted by sancheti on 25/02/2012 at 02:35 AM

0 likes  Reply

Charity begins at home, having said that I appreciate your concern of protecting one's fundamental right and I suppose every one including the president, myself, yourself and others agree to it. But my simple point is that survival instincts are far more strong and deadlier than any of our fundamental right hence my only concern is that the matter getting pushed to the brink bearing some unlikely results. Secondly as far as the drafting and implementation of ND policy is concerned, my understanding says that nobody is putting forth any IPC or constitutional amendment, it is just a framework of assuring (not ensuring) level playing field to all its members and others. Now when we talk of matters on a regional or national levels we can always carry out the litmus test on much smaller scale and leave it to its merits and find out whether it percolates to the national fora or not. Why kill an idea before it is born why not nurture it in a way that might give us a bright and prosperous future..jQuery15108023606988280876_1330165815444?

Posted by Sundeep Kedia on 25/02/2012 at 05:45 AM

0 likes  Reply

 

NO BODY HAVE RIGHT TO ASK ANY BUSINESS MAN FOR SHUT DOWN THEIR BUSINESS ON ANY GROUND. THIS IS HIS FUNDAMENTAL RIGHT TO BUSINESS AS PER HIS CHOICE.

Posted by JAJODIAPAWAN on 25/02/2012 at 01:13 AM

0 likes  Reply

Respected Sir,The policy does not cover Regional Distributors

Posted by premierinfotech on 25/02/2012 at 12:29 PM

0 likes  Reply

 

The issue is too complicated to be resolved by simply issuing some draft policy, there are organisations like BALAJI, TECHNOCRAT, SUPERTRON etc.. who have grown to the current levels from scratch, hence such restrictions would mean that small time players who aspire to become the so called "BIG FISH" of the market will have to do away with their dreams. This does not mean that things should be left the way it is, there is a definitive need of a mechanism to address the genuine fears and problems in such a way that it can pave a healthy, ethical and co-genial business environment.

Posted by Sundeep Kedia on 24/02/2012 at 07:42 AM

0 likes  Reply

 

Good way of discussion. Though I am not very expert in this chapter but I think this policy is really essential and good for the fair and smooth practice of trade.

Posted by jainmanoj on 23/02/2012 at 04:47 AM

0 likes  Reply

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