_{The term 'wholesale' used in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2003, is to be understood in the sense in which it is defined in Indian Statutes and the rules framed thereunder, relating to trade, such as the definitions contained in the Monopolies and Restrictive Trade Practices Act, 1969, Standards of Weights and Measures (Packaged Commodities) Rules, 1977, etc. While bringing out the distinction between 'wholesaler' and 'retailer', he relied on the following.-}

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Sl.    Definition of                     Definition of                 Source
No.   retailer/retail                  wholesaler/wholesale
    sales/retail dealer             dealer, cash and carry, etc.

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1.   Section 2(p) of the          Section 2(x) of the MRTP        As per
     MRTP Act, 1969               Act, 1969 "Wholesaler" in       Monopolies and
     "Retailer" in relation to    relation to the sale of any     Restrictive Trade
     the sale of any goods,       goods, means a person who       Practices (MRTP)
     includes every person,       sells the goods, either in      Act, 1969
     other than a wholesaler,     bulk or in large quantities,
     who sells the goods to       to any person for the
     any other person, and in     purpose of resale, whether
     respect of the sale of       in bulk or in the same or
     goods by a wholesaler, to    smaller quantities
     any person, for any
     purpose other than
     resale, includes that
     wholesaler
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2.   Rule 2(o) of Standard of     Rule 2(w) of Standards of       The Standards of
     Weights and Measures         Weights and Measures            Weights and
     (Packaged Commodities)       (Packaged Commodities)          Measures Law
     Rules, 1977 "Retail          Rules, 1977 "Wholesale          Manual
     dealer" in relation to any   dealer" in relation to any
     commodity in packaged        commodity in packaged
     form means a dealer          form means a dealer who
     who directly sells such      does not directly sell such
     packages to the              commodity to any consumer
     consumer and includes,       but distributes or sells such
     in relation to such          commodity through one or
     packages as are sold         more intermediaries.
     directly to the consumer,
     a wholesale dealer who
     makes such direct sale.
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3.   x x x x                      x x x x                         x x x x
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4.   "Retail package" means       "Whole package" means a         The Standards of
     a package containing         package containing.-            Weights and
     any commodity which is                                       Measures
     produced, distributed,       (i) a number of retail          (Packaged
     displayed, delivered or      packages, where such first      Commodities)
     stored for sale through      mentioned package is            Rules, 1977, Rule
     retail sales agencies or     intended for sale,              2(p) and 2(x)
     other instrumentalities      distribution or delivery to a
     for consumption by an        intermediary and is not
     individuals or a group of    intended for sale direct to a
     individuals                  single consumer;

                                  (ii) a commodity sold to an
                                  intermediary in bulk to
                                  enable such intermediary to
                                  sell, distribute or deliver
                                  such commodity to the
                                  consumer in smaller
                                  quantities;

                                  (iii) packages containing
                                  ten or more than ten retail
                                  packages provided that the
                                  retail packages are labelled
                                  as required under the rules
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5.                                Defines "Wholesale dealer"      The Law Lexicon,
                                  as a trader who stores bags     2nd Edition, 2002
                                  and sells grain by the bulk
                                  without breaking the bags
                                  is a wholesale dealer
                                  "Wholesale dealer" is a
                                  person who keeps for
                                  wholesale to traders a
                                  commodity for the purposes
                                  of trade
------------------------------------------------------------
6.   Defines "Retail" as the      Defines "wholesale" as sale     The Law Lexicon,
     sale of goods in small       in large quantities; where a    2nd Edition, 2002
     quantities to ultimate       trader sells the whole or a
     consumers                    large part of his produce
                                  direct, at fixed price to
                                  customers, that price also
                                  can be described as the
                                  "wholesale price"
------------------------------------------------------------
7.   Defines "Retail sale" is                                     The Law Lexicon,
     to sell goods in small                                       2nd Edition, 2002
     parcels and not in gross
     If a person takes a
     house, or part of a
     house, either in his own
     name or in the name of
     any other person, and
     then, either personally
     or by his agent, makes
     sale of spirits by retail,
     he carries on business
     there as a retailer of
     spirits, notwithstanding
     he keeps no spirits
     there, and the spirits
     which he sells there are
     kept in and delivered
     from a store in another
     town where he carries
     on the business of a
     wine and spirit merchant
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8.   Defines "Retail" as the      Oxford Dictionary defines       Oxford Dictionary
     sale of goods to the         "Wholesale" as the selling
     public for use or            of goods in large quantities
     consumption rather           to be retailed by others
     than for resale
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9.   Defines "Retailer" as a      Defines "Wholesaler" as a       Oxford
     distributor that sells       distributor that sells goods    Dictionary of
     goods, or services to        in large quantities, usually    business
     consumers (compare           to other distributor.
     wholesaler). There are       Typically, a wholesaler
     broadly three categories     buys and stores large
     of retailer; multiple        quantities of several
     shops, co-operative          producers' goods and
     retailers and                breaks into the bulk
     independent retailer         deliveries to supply
                                  retailers with smaller
                                  amounts assembled and
                                  sorted to order
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10.                               Defines "Wholesaler" as         Hyper Dictionary
                                  someone who buys large          and Wordnet (r)
                                  quantities of goods and         1.7
                                  resells to merchants rather
                                  than to the ultimate
                                  customers
-----------------------------------------------------------------------------------
11.                               Defines "Wholesaler" as an      Dictionary of
                                  Enterprise which makes its      purchasing and
                                  profits through buying          supply --
                                  supplies in bulk at Trade       Terminology for
                                  prices and sells and            buying and
                                  distributes them to retail      selling - H.K.
                                  business and industrial         Compton and
                                  enterprises on trade terms.     D.A. Jessop
                                  Originally a wholesaler was     (Tudor
                                  so designed as a middleman      Publication)
                                  who sold "wholesale pieces'
                                  of materials and goods to
                                  retail customer's via
                                  shop-keepers
------------------------------------------------------------
12.                               Defines 'Cash and carry' as      Dictionary of
                                  buyer pays cash and             purchasing and
                                  collects, loads and carries     supply --
                                  away the goods he has           Terminology for
                                  purchased. More usually         buying and
                                  applicable to the domestic      selling -- H.K.
                                  market                          Compton and D.A.
                                                                  Jessop (Tudor
                                                                  Publication)
------------------------------------------------------------
13.  Defines "Retailer" as a      Defines "Wholesaler-" as a      The Marketing
     middleman company            company serving as the          Glossary-Key
     that purchases goods         middleman between a             Terms, Concepts
     from a manufacturer or       manufacturer and a              and Applications
     wholesaler for resale to     retailer. A wholesaler buys     in
     the goods' ultimate          goods from the                  Marketing
     consumption at a profit.     manufacturer for resale (at     Management/
     Retailers usually sell       a profit) to retailers and,     Advertising/
     merchandise for              occasionally, directly to       Direct
     personal and household       consumers. There are two        Marketing/Sales
     consumption, with the        basic types of wholesalers:     Promotion/
     merchandise both stored                                      Market
     and displayed on the         (1) Full-service wholesalers    Research/Public
     store's premises             provide services such a         Relations/Sales-
                                  carrying stock, maintaining     Mark N. Clement
     Store retailers are the      sales forces, and offering      (American
     operators of department      management and credit           Management
     stores, super-               assistance to buyers; and       Association
     markets, clothing                                            Publication)
     boutiques and so on          (2) Limited service
                                  wholesaler's offer some, but
                                  not all of the services
                                  rendered by full-service
                                  wholesalers
     Non-store retailers
     include companies that
     sell through mail order
     catalogs, engage in
     direct selling (e.g.
     House-to house) or
     operate vending
     machines
------------------------------------------------------------
14.  Defines "Retailing" as       Defines "Wholesaling as the     The Marketing
     the practice of making       process of buying               Glossary-Key
     goods available to           merchandise in large            Terms, Concepts
     consumers for their          quantities from a               and Applications
     personal use in a            manufacturer for resale to      in Marketing
     location or situation that   retailers or business users.    Management/
     provides a forum for         Unlike retailing,               Advertising/
     exchanging those goods.      wholesaling generally does      Direct
     There are four basic         not involve actively            Marketing/Sales
     functions of retailing:      promoting products, nor         Promotion/
     (1) Buying and storing       does it involve establishing    Market
         goods;                   the wholesale outlet in a       Research/Public
     (2) Transferring title       location convenient to or       Relations/Sales-
         of those goods;          appealing to buyers. This is    Mark N.
     (3) Providing information    because wholesaling entails     Clemente
         on the nature            selling products primarily      (American
         and uses of those        to businesses that come         Management
         items; and               from a wide geographic          Association
     (4) (In some cases)          area and that are generally     Publication)
         extending credit to      indifferent to promotional
         consumers                trappings
------------------------------------------------------------
15.                               Defines "Cash and carry         The Marketing
                                  wholesaler" as a type of        Glossary-Key
                                  limited service wholesaler      Terms, Concepts
                                  selling products to             and Applications
                                  retailers, who pay for and      in Marketing
                                  pick up the product at the      Management/
                                  wholesaler's location. For      Advertising/
                                  example, a retailer drives      Direct
                                  to a cash and carry             Marketing/Sales
                                  wholesaler to buy a set         Promotion/
                                  quantity of product, paying     Market
                                  cash to the merchandise         Research/Public
                                  and taking possession of        Relations/Sales -
                                  the goods. Cash and carry       Mark N.
                                  wholesalers typically deal      Clemente
                                  in fast moving (e.g.            (American
                                  perishable) products, such      Management
                                  as baked goods                  Association
                                                                  Publication)
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_{Wholesaling consists of the sale of goods/merchandise to retailers, industrial, commercial, institutional or other professional business users or other wholesalers and related subordinated services.}

_{Retailing services consist of the sale of goods/merchandise for personal or household consumption either from a fixed location (e.g. store, kiosk etc.) or away from a fixed location and related subordinate services.}