New FDI norms: Key online media companies feel the pinch of 26% cap

The government’s move to cap foreign direct investment in digital media in line with print media has left a few key players in the lurch. News portal VCCircle, owned by NewsCorp, New-York-headquartered Quartz, which has a partnership with Scroll.in, and HuffPost, which operates independently in the country, will have to reduce their foreign holding to comply with the rules, experts said.

While none of the players are likely to be happy with the move, some say more clarity is needed on the matter. “The policy does not mention if the FDI cap is restricted only to foreign companies investing in digital