Nod likely for FIIs in news channels

Foreign institutional investors (FII) are likely to be allowed to invest in Indian news channels. The FII investment limit may be capped within the existing foreign direct investment (FDI) limit of 26 per cent, senior government officials said.

The government is preparing a draft proposal to amend the existing news channels up-linking norms for this purpose. Under the present norms, investments by FIIs are not permitted in Indian news channels.

"When FIIs are allowed, it will be within the current FDI limit. The possibility of allowing investment over and above the current limit is not a possibility," said a senior government official.

However, the government is yet to decided whether the FII investment should be allowed only in listed companies or funds should be allowed to invest in un-listed companies also.

The government is likely to bring in the changes in the news channel up-linking norms before October 31, 2004, the deadline given to news channels to comply with the new FDI norms.

The government also said that the news channels guidelines will not just be applicable for 24 hour news channel, but even channels with a single news bulletin will also come under the purview of the news channel up-linking norms.

"There has been proposals to bring non news channels with news bulletins outside the purview of the news channels up-linking norms. But the government is of the view that channels with even one new bulletin will have to follow the norms," said a senior government official.

Government officials also said that various channels have been petitioning the government to increase the FDI limit in news channels and also permit FII investments over and above the current FDI cap.

Some channels also wanted the government to allow to higher foreign direct investment limit in the holding company while the operating company will have foreign direct investment with in the sectoral cap.

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Beam bar

• The FII investment limit may be capped within the existing FDI limit of 26 per cent
• The government is preparing a draft proposal to amend the existing news channels uplinking norms for this purpose
• Under the present norms, investments by FIIs are not permitted in Indian news channels
• However, the government is yet to decide whether the FII investment should be allowed only in listed companies or funds should be allowed to invest in unlisted companies as well
• The government is likely to bring in the changes in the news channel up-linking norms before October 31
• The government also said that the news channel guidelines will not just be applicable to 24-hour news channels, but even channels with a single news bulletin will come under the purview of the news channel uplinking norms
• Various channels have been petitioning the government to increase the FDI limit in news channels and also permit FII investments over and above the current FDI cap
• Some channels also wanted the government to allow higher FDI limit in the holding company while the operating company will have FDI within the sectoral cap