At present, Foreign Direct Investment (FDI) up to 49% is permitted in an Indian Joint Venture Company for setting up hardware, Up-linking HUB or Teleports and complying with guidelines of GOI and Ministry of Information and Broadcasting for Up-linking and broadcasting.
GOI has recently, vide its notification dated 13th January 2006, revised its Policy and enhanced the parameters of FDI in relation to Up-linking of TV channels.
- With prior approval of GOI, FDI up to 100% would be permitted for Up-linking a Non-News & Current Affairs TV Channel.
- For Up-linking News and Current Affairs TV Channels, foreign equity holding including FDI and Foreign Institutional Investors (FII), investments would be capped at 26% of the Paid Up Equity of the Indian applicant company, with prior consent of GOI.
However, GOI has imposed the restriction that the entity making portfolio investment in the form of FII and NRI deposits shall not be "persons acting in concert" with FDI investors, as stipulated in the regulations of the Securities and Exchange Board of India.
The foreign holding component, if any, in the equity of the Indian shareholder companies of the applicant company will be duly reckoned on a pro-rata basis for the purpose of calculating the foreign equity of the applicant company.
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