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Meet the 26% FDI cap, says government to digital media companies | India News

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NEW DELHI: Days after digital news media and broadcast platforms remained under the regulatory control of the Ministry of Information and Broadcasting (I&B), the government on Monday ordered digital media outlets to ensure compliance with the September 2019 center to attract foreign direct investment (FDI) below the 26% limit.
The notice said that companies that exceed the 26% FDI limit have until October 15, 2021 to ensure compliance. All digital media companies, regardless of the scope of the FDI, must also share details of their shareholding pattern, directors and significant shareholders, promoters and beneficial owners, and confirmation regarding compliance with pricing, documentation, and reporting according to the FDI Policy. Exchange Management Rules (Non-Debt Instruments), 2019, and Exchange Management Regulations (Non-Debt Instruments Payment and Reporting Mode), 2019, with the I&B Ministry within a month.
Digital outlets have also been asked to provide their past and existing foreign and subsequent investments, PAN details, the most recent audited and unaudited profit and loss statement, and balance sheets along with audit reports. This, the ministry said, was part of the application of the 26% limit on foreign investments in digital media, notified on September 18, 2019.
Companies with a FDI above 26% must also inform the I&B ministry before December 16 of the steps they intend to take to reduce it below 26% and seek approval to continue operations. Any new foreign investment will also need the approval of the Center in accordance with the requirements of the FDI policy.

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