[icernet] Guidelines issued for FDI in news, current affairs print media

[Arul Selvan MIC]

News and current affairs publications are now finally thrown open to
Foreign Direct Investment upto 26 per cent with the Government today
issuing guidelines stipulating that the largest Indian shareholder
controls at least 51 per cent equity in any such entity.

The guidelines also make it clear that any foreign entity investing
should have "sound credentials and international standing".

The 51 per cent equity in any new entity is exclusive of that held by
public sector banks and financial institutions, and of the total FDI
envisaged in any joint venture at least 50 per cent will have to be
inducted by issue of fresh equity, an official statement said here.

While giving its nod to allow FDI in the sector with a 26 per cent cap,
the Union Cabinet had decided that any one single shareholder in such a
venture must be an Indian with significantly higher stakes than the 26
per cent foreign equity permitted.

The guidelines come five months after the Union Cabinet cleared FDI in
print media amid controversy with several Opposition parties and a
section of news organisations opposing any such move, while others
favoured it.

The permission of the Ministry of Information and Broadcasting is
subject to the condition that at least three-fourth of any new entity's
board of directors, key executives as well as editorial staff are from
among resident Indians.

Source:
http://www.outlookindia.com/pti_news.asp?id=99054