Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
Press Note No.7 (2012 Series)
Subject: Review of the policy on Foreign Investment (FI) in companies operating III the
Broadcasting Sector
1.0 Present Position:
1.1 As per extant policy, the foreign investment (FI) limits, in companies operating in the
Broadcasting Sector, are set out in paragraph 6.2.7 of 'Circular 1 of 2012 - Consolidated FDI
Policy', issued by the Department of Industrial Policy and Promotion (DIPP), on 10.04.2012.
2.0 Revised Position:
2.1 The Government of India has reviewed the position in this regard and decided to amend the
foreign investment limits, in companies engaged in providing broadcasting carriage services, in the
manner indicated below, subject to such terms and conditions, as may be specified by the Ministry of
Information and Broadcasting from time to time:
(1) Teleports (setting up up-linking HUBsffeleports); Direct to Home (DTH); Cable
Networks (MSOs operating at National or State or District level and undertaking
upgradation of networks towards digitalization and addressability):
Increase in the foreign investment (FI) limit from 49% to 74%, subject to:
(a) Foreign investment up to 49% being permitted under the automatic route; and
(b) Foreign investment beyond 49% and up to 74% being permitted under the Government
route.
(2) Mobile TV:
Permitting foreign investment (FI) up to 74%, subject to:
(a) Foreign investment up to 49% being permitted under the automatic route; and
(b) Foreign investment beyond 49% and up to 74% being permitted under the Government
route.
2.2 The foreign investment (FI) limit, in companies engaged in the aforestated activities of the
I&B sector, shall include, in addition to FDI, investment by Foreign Institutional Investors (FIls),
Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository
Receipts (ADRs), Global Depository Receipts (GDRs) and convertible preference shares held by
foreign entities.
2.3 The terms and conditions relating to security and other conditions, will separately be
incorporated in the sectoral guidelines of each broadcasting carriage service, as specified in
paragraph 3.0 below.3.0 Accordingly, paragraph 6.2.7 under 'Circular 1 of 2012-Consolidated FDI Policy' IS
substituted with the following:
SI. No. Sector/Activity 0/0 of FDI Entry Route
Cap/Equity
6.2.7 Broadcasting
6.2.7.1 Broadcasting Carriage Services
6.2.7.1.1 (1) Teleports (setting up of up- 74% Automatic up to 49%
linking HUBs/Teleports);
(2) Direct to Home (DTH); Government route beyond 49%
(3) Cable Networks (Multi System and up to 74%
operators (MSOs) operating at
National or State or District
level and undertaking
upgradation of networks
towards digitalization and
addressability);
(4) Mobile TV;
(5) Headend-in-the Sky
Broadcasting Service (HITS)
6.2.7.1.2 Cable Networks (Other MSOs not 49% Automatic
undertaking upgradation of networks
towards digitalization and
addressability and Local Cable
Operators (LCOs»
6.2.7.2 Broadcasting Content Services
6.2.7.2.1 Terrestrial Broadcasting FM (FM 26% Government
Radio), subject to such terms and
conditions, as specified from time to
time, by Ministry of Information &
Broadcasting, for grant of permission
for setting up of FM Radio stations
6.2.7.2.2 Up-linking of 'News & Current 26% Government
Affairs' TV Channels
6.2.7.2.3 Up-linking of Non-'News & 100% Government
Current Affairs' TV Channels/
Down-linking of TV Channels
6.2.7.3
FDI for Up-linking/Down-linking TV Channels will be subject to compliance with the
relevant Up-linking/Down-linking Policy notified by the Ministry of Information &
Broadcasting from time to time.
6.2.7.4
Foreign investment (FI) in companies engaged in all the aforestated services will be
subject to relevant regulations and such terms and conditions, as may be specified
from time to time, by the Ministry of Information and Broadcasting.
6.2.7.5 The foreign investment (FI) limit in companies engaged in the aforestated activities
shall include, in addition to FDI, investment by Foreign Institutional Investors (FIls),
Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs),American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and
convertible preference shares held by foreign entities.
6.2.7.6
Foreign investment in the aforestated broadcasting carriage services will be subject to
the following security conditions/terms:
Mandatory Requirement for Key Executives of the Company
(i) The majority of Directors on the Board of the Company shall be Indian
Citizens.
(ii) The Chief Executive Officer (CEO), Chief Officer In-charge of technical
network operations and Chief Security Officer should be resident Indian
Citizens.
Security Clearance of Personnel
(iii) The Company, all Directors on the Board of Directors and such key executives
like Managing Director / Chief Executive Officer, Chief Financial Officer
(CFO), Chief Security Officer (CSO), Chief Technical Officer (CTO), Chief
Operating Officer (COO), shareholders who individually hold 10% or more
paid-up capital in the company and any other category, as may be specified by
the Ministry of Information and Broadcasting from time to time, shall require
to be security cleared.
In case of the appointment of Directors on the Board of the Company and such
key executives like Managing Director / Chief Executive Officer, Chief
Financial Officer (CFO), Chief Security Officer (CSO), Chief Technical
Officer (CTO), Chief Operating Officer (COO), etc., as may be specified by
the Ministry of Information and Broadcasting from time to time, prior
permission of the Ministry of Information and Broadcasting shall have to be
obtained.
It shall be obligatory on the part of the company to also take prior permission
from the Ministry of Information and Broadcasting before effecting any
change in the Board of Directors.
(iv) The Company shall be required to obtain security clearance of all foreign
personnel likely to be deployed for more that 60 days in a year by way of
appointment, contract, and consultancy or in any other capacity for installation,
maintenance, operation or any other services prior to their deployment. The
security clearance shall be required to be obtained every two years.
Permission vis-a-vis Security Clearance
(v) The permission shall be subject to permission holder/licensee remaining
security cleared throughout the currency of permission. In case the security
clearance is withdrawn the permission granted is liable to be terminated
forthwith.
(vi)
In the event of security clearance of any of the persons associated with the
permission holder/licensee or foreign personnel is denied or withdrawn for any
reasons whatsoever, the permission holder/licensee will ensure that theconcerned person resigns or his services terminated forthwith after receiving
such directives from the Government, failing which the permission/license
granted shall be revoked and the company shall be disqualified to hold any
such Permission/license in future for a period or five years.
Infrastructure/Network/Software related requirement
(vii) The officers/officials of the licensee companies dealing with the lawful
interception of Services will be resident India citizens.
(viii) Details of infrastructure/network diagram (technical details of the network)
could be provided, on a need basis only, to equipment suppliers/manufactures
and the affiliate of the licensee company. Clearance from the licensor would be
required if such information is to be provided to anybody else.
(ix) The Company shall not transfer the subscribers' databases to any person/place
outside India unless permitted by relevant Law.
(x) The Company must provide traceable identity of their subscribers.
Monitoring, Inspection and Submission of Information
(xi) The Company should ensure that necessary provision (hardware/software) is
available in their equipment for doing the Lawful interception and monitoring
from a centralized location as an when required by Government.
(xii) The company, at its own costs, shall, on demand by the government or its
authorized representative, provide the necessary equipment, services and
facilities at designated place( s) for continuous monitoring or the broadcasting
service by or under supervision of the Government or its authorized
representative.
(xiii) The Government of India, Ministry of Information & Broadcasting or its
authorized representative shall have the right to inspect the broadcasting
facilities. No prior permission/intimation shall be required to exercise the right
of Government or its authorized representative to carry out the inspection. The
company will, if required by the Government its authorized representative,
provide necessary facilities for continuous monitoring for any particular aspect
of the company's activities and operations. Continuous monitoring, however,
will be confined only to security related aspects, including screening of
objectionable content.
(xiv) The inspection will ordinarily be carried out by the government of India,
Ministry of Information & Broadcasting or its authorized representative after
reasonable notice, except in circumstances where giving such a notice will
defeat the very purpose of the inspection.
(xv) The company shall submit such information with respect to its services as may
by required by the Government or its authorized representative, in the format as
may be required, from time to time.
(xvi) The permission holder/licensee shall be liable to furnish the Government of
India or its authorized representative or TRAI or its authorized representative,
such reports, accounts, estimates, returns or such other relevant information and
at such periodic intervals or such times as may be required.
(xvii) The service providers should familiarize/train designated officials or the
Government or officials of TRAI or its authorized representative(s) in respect
of relevant operations/features of their systems.National Security Conditions
(xviii) It shall be open to the licensor to restrict the Licensee Company from operating
in any sensitive area from the National Security angle. The Government of
India, Ministry of Information and Broadcasting shall have the right to
temporally suspend the permission of the permission holder/Licensee in public
interest or for national security for such period or periods as it may direct. The
company shall immediately comply with any directives issued in this regard
failing which the permission issued shall be revoked and the company
disqualified to hold any such permission in further for a period or five years.
(xix) The company shall not import or utilize any equipment, which are identified as
unlawful and/or render network security vulnerable.
Other conditions
(xx) Licensor reserves the right to modify these conditions or incorporate new
conditions considered necessary in the interest of national security and public
interest or for proper provision of broadcasting services.
(xxi) Licensee will ensure that broadcasting service installation carried out by it
should not become a safety hazard and is not in contravention of any statute,
rule or regulation and public policy.
Joint Secretary to the
4.0 The above decision will take immediate effect.
(A .alii'XAtsro:J)
ent of India
D/o IPP File No.: No. 5/5/2012-FC.I dated: 20
t
September, 2012
Copy forwarded to:
1. Press Information Officer, Press Information Bureau- for giving necessary publicity.
2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press
Note on DIPP 's website.
