News agencies and digital media websites will have to meet a 26% FDI cap (representation)
New Delhi:
News aggregators, news agencies that provide information to digital media companies, and companies that upload information and news to websites will have to comply with the 26% cap on foreign investment, the government said on Friday.
These companies “would be required to align their FDI at the 26 percent level with central government approval, within one year from the date of publication of this clarification,” the Promotion Department said. of Industry and Internal Trade (DPIIT). .
In August of last year, the Union Cabinet approved 26% FDI (foreign direct investment) under government channel for downloading / streaming news and current affairs through media digital, such as print media.
A section of industry players and experts said the decision to cap FDI in the digital media sector at 26% raises questions that need clarification.
The ministry said it had received representations from interveners seeking clarification on certain aspects of the decision.
“After due consultation, it is clarified (that) the decision to authorize 26% government FDI would apply” to certain “categories of Indian entities, registered or located in India” , he said.
The categories are: entities that upload / stream news and current affairs to websites, apps and other platforms; news agencies that collect, edit and distribute / transmit information, directly or indirectly, to digital media entities and / or news aggregators; news aggregators that, using software / web applications, aggregate news content from various sources, such as news websites, blogs, podcasts, video blogs, into one place.
He also said that compliance with the FDI policy would be the responsibility of the recipient company.
The company should also adhere to certain conditions such that the majority of the directors of the board of directors of the company must be Indian citizens; the CEO is an Indian.
“The entity is required to obtain a security clearance from all foreign personnel likely to be deployed for more than 60 days per year by appointment, contract or advice or in any other capacity for the operation of the entity before their deployment, “It said.
He added that in the event that a foreign staff member’s security clearance is denied or withdrawn for any reason, the vested company will ensure that the individual resigns or that their services cease immediately after having received these directives from the government.
(Except for the title, this story was not edited by GalacticGaming staff and is posted from a syndicated feed.)
