22.8 C
California
Thursday, October 22, 2020

News aggregators, digital media, news agencies need to comply with 26% FDI cap

New Delhi: The Centre of Friday announced that news aggregators, news agencies will have to comply with the 26 per cent foreign investment cap.

In August 2019, the Union Cabinet had approved 26 per cent FDI (foreign direct investment) under government route for uploading/streaming of news and current affairs through digital media, on the lines of print media.

Now, the companies will be required to “align their FDI to the 26 per cent level with the approval of the central government, within one year from the date of issue of this clarification”, the Department for Promotion of Industry and Internal Trade (DPIIT) said.

All digital media news institutions have been given one year time to meet shareholding requirements.

The department said that it had received representations from stakeholders seeking clarifications on certain aspects of this decision. A few experts and people from the industry had stated their reservations and said that the move throws up questions which need clarifications.

“After due consultations, it is clarified (that) the decision of permitting 26 per cent FDI through government route would apply” to certain “categories of Indian entities, registered or located in India,” it said.

The categories are – entities uploading / streaming news and current affairs on websites, apps, other platforms; news agencies which gathers, writes and distributes/transmits news, directly or indirectly, to digital media entities and/or news aggregators; news aggregators which, using software / web applications, aggregates news content from various sources, such as news websites, blogs, podcasts, video blogs, in one location.

The rules have brought with the objective to create a self-reliant and responsible digital news media ecosystem. 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.

Also, this will help in tightening up the Chinese digital media as it will give control over foreign digital media. They can hurt India’s interests and influence elections like the US Presidential elections 2016. It paves way for true FDI investments that are not prejudicial to Indian interests. 

Indian interests will get priority as there is a real threat of fake news and information warfare especially from neighboring countries. These policy decisions will purportedly help in removing such threats.

Indian digital media companies will get a level playing field. 


Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get in Touch

211FansLike
35FollowersFollow
41FollowersFollow

Recommend for You

‘Out of control’: European leaders scramble to control the second wave, with a state of emergency and lockdowns

A nurse gets ready to enter a room to take care of a patient infected with Covid-19 at the intensive care unit of the...

Trump Promotes Baseless, QAnon-Endorsed Conspiracy Theory Alleging Obama Staged Bin Laden’s Killing

Topline President Trump promoted a baseless conspiracy theory on Tuesday alleging the Obama administration covered up a plot to stage Osama Bin Laden’s death,...

Democrats Attack Trump On Twitter Following Report He Paid $750 In Taxes

Topline A bombshell report in the New York Times detailing President Trump's tax information dating back two decades led to a social media onslaught...

Special Report: Plastic Pandemic: COVID-19 Trashed The Recycling Dream

The coronavirus pandemic has sparked a rush for plastic.From Wuhan to New York, demand for face shields, gloves, takeaway food containers and bubble wrap...

Why Tech Giants Limited The Spread Of NY Post Story On Biden

OAKLAND, California: When Facebook and Twitter moved quickly this week to limit the spread of an unverified political story published by the conservative-leaning...

Related Articles

America’s Best-Selling Electric Cars In The First Half Of...

Unsurprisingly, Tesla TSLA is still dominating the American electric vehicle market....

BoE’s Saunders Expects More Stimulus For COVID-hit UK Economy

LONDON: Bank of England interest rate-setter Michael Saunders said on Friday that it was...

Sensex rises 115 points, Nifty at 11,560

New Delhi: Markets opened in the positive zone on Wednesday amidst positive global cues. The...

New England Patriots Wait For Latest Round Of Undrafted...

Former Arkansas linebacker De'Jon Harris ranks first among the...