The Hindu : National : FDI liberalised for uplinking of news channels

Online edition of India's National Newspaper
Wednesday, Jan 18, 2006

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National

FDI liberalised for uplinking of news channels

Special Correspondent

New Delhi: The Government has allowed foreign direct investment (FDI) up to 26 per cent to include investment by foreign institutional investors in uplinking of television channels in the news and current affairs category. Earlier, the provision for 26 per cent foreign equity in this sector did not include the participation of FIIs.

In a press note issued here on Tuesday, the Commerce and Industry Ministry also laid down the condition that the portfolio investment in the form of FII/NRI deposits would not be "persons acting in concert" with the FDI investors. This is based on the definition laid down in the SEBI (substantial acquisition of shares and takeovers) regulations, 1997.

In addition, the Ministry has specified that 100 per cent FDI will be allowed in uplinking of television channels in the non-news category. "FDI up to 100 per cent will be allowed with prior approval of the government for uplinking a non-news and current affairs TV channel."

As for "Uplinking HUB/teleports," the Ministry says FDI up to 49 per cent will be permitted with prior Government approval.

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