Digital media asks to reduce foreign funding to 26 per cent

Digital media companies that have more than 26% foreign investment will get one year to bring down the share, according to the ministry of information and broadcasting order issued on Monday that outlines the procedure for compliance with India’s foreign funding rules. The government’s public notice comes a year after the Union Cabinet led by Prime Minister Narendra Modi spelt out a 26% foreign investment limit for entities engaged in uploading or streaming of news and current affairs via digital media.

According to the government order digital media groups which have foreign investment less than 26% should submit complete details about their shareholding pattern within one month. They will also have to provide details about the directors, promoters and shareholders. “Entities, which, at present, have an equity structure with foreign investment exceeding 26 per cent would give similar details... within one month and to take necessary steps for bringing down the foreign investment to 26% by 15 October 2021 and seek approval of the ministry of information and broadcasting. 

Any entity which intends to bring fresh foreign investment in the country has to seek prior approval of the central government through the foreign investment facilitation portal of DPIIT. The ministry has also stipulated that the companies will have to comply with “the requirements of citizenship of the Board of Directors and of the Chief Executive Officers (by whatever name called)”.