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Digital Media Outlets Must Bring Down FDI To 26% By October 2021

    19 November , 2020         Fdiindia

Digital Media Outlets Must Bring Down FDI To 26% By October 2021

Digital media outlets were asked by the central government comply with the rules and regulations that make them qualified to 26 per cent FDI (foreign direct investment) mandated by cabinet laet year.

"Ministry of Information and Broadcasting has today 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 September 18, 2019, which had permitted 26 per cent FDI under Government approval route," the ministry said in a release.

The Ministry has shelled out the comprehensive measures to be undertaken by qualified entities to follow with this verdict, within a month. To authorize qualified establishments to comply with the government rules, they are required to take certain steps, the ministry said.

"Entities with FDI below 26 per cent have to intimate the ministry within the next month, with details of the shareholding pattern, names of directors and promoters, confirmation with regard to compliance with pricing, documentation and reporting requirements under the FDI policy, 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), Permanent Account Number, latest profit and loss balance sheets along with auditor report," it said.

"Entities which, at present, have an equity structure with foreign investment exceeding 26 per cent would give similar details to the Ministry of Information and Broadcasting within one month from today, and to take necessary steps for bringing down the foreign investment to 26 per cent by October 15, 2021, and seek approval of the Ministry," it added.