Ministry of I&B Requests Compliance of Policy on FDI in Digital
Media within A Month
Union Ministry of Information and Broadcasting
has issued a public notice to facilitate eligible entities involved in uploading/streaming
of news and current affairs through digital media, to comply with the decision of
Union Government on 18th September 2019, which had permitted 26% FDI
under Government approval route on 16 November 2020.
In a Public Notice, available on its website, the
Ministry has today laid out the detailed actions to be undertaken by eligible entities
to comply with this decision, within a month. Under the notice,
i.
Entities having foreign investment below 26% may furnish an intimation
to the Ministry of Information & Broadcasting within one month from today
giving the following:-
(a) Details of the company / entity and its shareholding
pattern along with the names and addresses of its Directors / shareholders,
(b) The names and address of Promoters/Significant Beneficial
Owners,
(c) A confirmation with regard
to compliance with pricing, documentation and reporting requirements under the FDI Policy, Foreign Exchange Management
(Non-debt Instruments) Rules, 2019 and Foreign
Exchange Management (Mode of Payment and Reporting of Non-debt Instruments) Regulations,
2019 along with copies of relevant reporting forms in support of the past/existing
foreign investment and downstream investment(s),
if any, and
(d) Permanent Account Number and the latest audited
/ unaudited Profit & Loss Statement and Balance Sheet along with the Auditor
report.
(ii) Entities which, at present, have an equity structure
with foreign investment exceeding 26% would give similar details as at (i) above to the Ministry of Information & Broadcasting within
one month from today, and to take necessary steps for bringing down the foreign investment to 26% by 15th October, 2021
and seek approval of the Ministry of Information & Broadcasting.
(iii) 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, as per the requirements of (a)
FDI Policy of Government of India and DPIIT
Press Note No. 4 of 2019 (dated 18.9.2019)
in this regard and (b) Foreign Exchange
Management (Non-debt Instruments)(Amendment) Rules, 2019 vide Notification dated
5.12.2019.
Note: - Investment means to subscribe,
acquire, hold or transfer any security or unit issued by a person resident in India.
(iv) Every entity has to comply with
the requirements of citizenship of Board of Directors and of the Chief Executive
Officers (by whatever name called). The entities are required to obtain security
clearance for all foreign personnel likely to be deployed for more than 60 days
in a year by way of appointment, contract or consultancy or any other capacity for
functioning of the entity, prior to their deployment. For this purpose, the entities
will apply to Ministry of Information & Broadcasting at least 60 days in advance
and the proposed foreign personnel shall be deployed by the entity only after prior
approval of this Ministry.