With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? 1. They can sell their own goods in addition to offering their platforms as market-places. 2. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below:

Answer: D. NEITHER statement is correct. Statement 1 is WRONG. Foreign-owned e-commerce firms operating in India under the FDI Marketplace model CANNOT SELL THEIR OWN GOODS. India's FDI Policy permits 100% FDI in B2C e-commerce only via the MARKETPLACE MODEL (Amazon, Flipkart facilitating third-party sellers) and PROHIBITS inventory-based B2C FDI (where the platform itself sells). This is the key restriction in DPIIT Press Note 2 of 2018. Statement 2 is WRONG (as stated). The 2018 FDI rules went further than 'limiting' platform ownership of sellers — they EXPRESSLY PROHIBIT marketplace e-commerce entities from holding INVENTORIES OR EQUITY IN SELLERS exceeding 25% of platform sales. So saying 'the degree is limited' understates the rule which is essentially a prohibition. Following official key, statement 2 is treated as not fully accurate. The correct framing: foreign-owned marketplaces CANNOT sell own goods (no inventory-based FDI) AND cannot have controlling interest in sellers. Source: DPIIT Press Note 2 of 2018 / FDI Policy on e-commerce.