Digital media companies that have more than 26% foreign investment will get a year to reduce participation, according to the Ministry of Information and Broadcasting order issued on Monday outlining the procedure for compliance with India’s foreign funding rules. .
According to the government order accessed by the Hindustan Times, digital media groups with less than 26% foreign investment are required to submit full details about their engagement pattern within one month. They should also provide details about the directors, promoters and shareholders.
“The entities that currently have a capital structure with foreign investment greater than 26 percent would give similar details … within a month and would take the necessary measures to reduce foreign investment to 26 percent by 15 December. October 2021 and would seek the approval of the Ministry of Information and Broadcasting, “said the order issued Monday by Amarendra Singh, undersecretary of the ministry.
The government’s public notice comes a year after the Union Cabinet headed by Prime Minister Narendra Modi set a 26% foreign investment limit for entities engaged in uploading or transmitting news and current affairs through of digital media.
Any entity that intends to bring new foreign investment to the country must seek prior approval from the central government through the DPIIT foreign investment facilitation portal.
The ministry has also stipulated that companies must comply with “the citizenship requirements of the Board of Directors and the CEOs (by whatever name is called).”
Entities are obliged to obtain security clearance for all foreign personnel that may be deployed for more than 60 days a year by appointment, contract or consultancy or any other operational capacity of the entity before their deployment.
For this purpose, the order says, the entities will appear before the Ministry of Information and Broadcasting at least 60 days in advance and the proposed foreign personnel will be deployed by the entity only after the prior approval of this ministry.
.
