Of NDP, RP and NECTA

The proposed ND Policy initiated by Confederation of Indian IT Associations (CIITA) is being perceived at resolving the continuing trade dispute between Rashi Peripherals and Guwahati based North-East Computer Trader's Association (NECTA) with the policy taking up the crucial pointers over defining national distributors in their own capacity as well as broaden new avenues for the national distributors in the East.

Although the proposed policy is still in a deliberation stage, The DQ Week has learnt that there has been a consensus over the policy clause whereby, the policy empowers all national distributors to operate in the eastern market (CIITA territory) in any segment, implying, all verticals are to be opened up for the NDs and there will not be any constraints over billing and the channel billing category.

"Although the ND policy hasn't been adopted yet and the final call will come in from the president of CIITA, there has been a major consensus among CIITA members (member associations) over the clauses of the policy of which, the policy will be opening up verticals for the national distributor," said Rajiv Poddar, secretary, CIITA.

However, a majority of the CIITA members are seemingly secretive over the ND policy stating it to be 'sensitive' and refused to comment on the policy or the raging issue between NECTA and Rashi Peripherals.

However, as a major clause and to substantiate the clause, companies aspiring to venture into multiple segments including distribution, sub-distribution, reselling and other categories cannot operate through indirect shareholding or through any other relative companies.

NECTA for a long time had alleged the shareholding in Savera Marketing Agency to be dubious and stated that the retail operation is indeed an extension or subsidiary of Rashi Peripherals. Now, with the ND Policy likely to be adopted on June 12, NECTA is seemingly optimistic that the conflict of interest in Guwahati will be resolved soon.

"The ND policy will definitely remove the dubious nature of the conflict that is raging in the city. Besides, the merit of the policy is not only that it will remove anomalies in the channel system related to defining the distributors, but will also bring out any trade malpractices like under-billing and others in the open," said Vikash Agarwal, VP, NECTA.

With the proposition in place among all the major associations in the East, most of the channel partners in Guwahati and some in Kolkata are predicting a possible merger between Rashi Peripherals and Savera Marketing Agency, the two companies against whom NECTA has been protesting for alleged business malpractices for long.

The DQ Week could not reach Rashi Peripherals spokesperson for their statement and opinion on the possible merger and implications of the proposed ND policy.