Digital Media, News Aggregators, Agencies Need to Comply with 26% FDI Cap, Says Govt

The company would also have to adhere to certain conditions such as the majority directors on the board of the firm shall be Indian citizens; the chief executive officer shall be an Indian. “The entity shall be required to obtain security clearance of all foreign personnel likely to be deployed for more than 60 days in a year by way of appointment, contract or consultancy or in any other capacity for functioning of the entity prior to their deployment,” it said.

It added that in the event of security clearance of any of the foreign personnel being denied or withdrawn for any reasons whatsoever, the investee firm will ensure that the concerned person resigns or his/her services are terminated forthwith after receiving such directives from the government. The 26 per cent FDI rule will apply to digital media entities registered/ located in India. Sources said that the clarification will help in the development of improved regulatory framework, creation of a more vibrant, accountable digital news media ecosystem with enhanced foreign direct investments into India.

“Genuine FDI flows, not inimical to India’s interests, into digital media news entities will be facilitated,” they said. The clarification also provides a level-playing field for Indian news publishers on digital media with those funded by foreigners and it would bring parity between FDI limits in print and in digital media entities.