The government is introducing new norms to address the problem of foreign investors violating FDI rules by using their test-marketing licenses for doing large-scale retail business. As per the current norms, foreign companies first seek permission to test-market their products in the country and later apply for licenses for retailing and/or setting up of manufacturing facilities. However, the government has found large-scale violations by many firms where the companies. Currently companies import product and sell them in the local market. They then seek repeated extension but never set up production units or seek proper retail license. Under the new norms companies seeking test-marketing permission would also have to simultaneously set up manufacturing facilities or seek proper retail license as the case may be. Such companies would have to submit detailed manufacturing and investment plans before they are accorded permission to test-market products. Such companies would also have to report the progress of their manufacturing plans every six months. Under the new policy being finalized, companies would be given only two years to test-market their products beyond which no extensions would be granted.