Indian govt liberalises policy on Foreign Direct Investment (FDI) in the broadcasting sector - Revised Policy

September 14, 2012:

The Cabinet Committee on Economic Affairs after review, has liberalised the policy on foreign investment, for companies operating in the broadcasting sector

(i) Teleports (setting up up-linking HUBs/Teleports): Direct to Home (DTH); Cable Networks (Multi-System-Operators operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability):

Currently, foreign investment, up to 49 percent, is permitted in these activities. It has been decided to now increase the foreign investment limit from 49 percent to 74 percent, with the proviso that:

(a) Up to 49 percent be permitted under the automatic route and

(b) Beyond 49 percent and up to 74 percent be permitted under the Government route



(ii) Mobile TV:

There is no specific dispensation under FDI policy for mobile TV. It has now been decided to permit Foreign Investment (FI) up to 74 percent, with the proviso that:

(a) Up to 49 percent be permitted under the automatic route and

(b) Beyond 49 percent and up to 74 percent be permitted under the Government route

(iii) Headend-in-the Sky Broadcasting Service:

The existing limit of 74 percent foreign investment - automatic route up to 49 percent and Government route beyond 49 percent and up to 74 percent - would continue

(i) In respect of Cable Networks (Other Multi-System-Operators not undertaking up-gradation of networks towards digitalization and addressability and Local Cable Operators), the existing limit of 49% foreign investment, under the automatic route, would continue.

(ii) Similarly, for up-linking of ‘News & Current Affairs’ TV channels / FM Radio, the existing limit of 26 percent foreign investment, under the Government route, would continue and for up-linking of Non-‘News & Current Affairs’ TV Channels / Down-linking of TV Channels, the existing policy of 100 percent foreign investment, through the Government route, would continue.

Foreign investment, in companies engaged in all the aforestated services, will be subject to sectoral and security conditionalities and guidelines, as may be specified from time to time, by the concerned Ministries.

>> GO TO PAGE 2



NOTE- "Complete Guide to Foreign Direct Investment (FDI) in India" (April 2012) is the only updated complete guide on FDI in India. Guide includes :- Complete Government of India and Reserve Bank of India approved FDI policies and guidelines; General conditions on FDI, All the permitted and prohibited sectors for FDI Investment: Guidelines and consequences of violation of FDI policies like penalties, adjudication and appeals, compounding proceedings; All important FDI forms & documents and 18 Charts/Diagrams/Tables ; Important contact details of RBI & Govt. of India & Special Supplement on World Investment Report 2012. Available online at Special Discounted Rates ...Click here

JOIN THE EXCLUSIVE CLUB FOR BANKERS & EX-BANKERS ...Click here