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Print
Media Sector Opened to Foreign Venture Capital Investors, Foreign
Institutional Investors, and Non Resident Indians
The
Government of India, vide a cabinet decision on June 16, 2005,
permitted investments by Non-Resident Indians ("NRIs")/Persons
of Indian Origin ("PIOs") and portfolio investments by
recognized Foreign Institutional Investors ("FIIs") in
news and current affairs publications, in addition to Foreign
Direct Investment ("FDI") up to an aggregate sectoral cap
of 26 percent.
Subsequently
on July 13, 2005, the Ministry of Information and Broadcasting
("MIB") issued detailed guidelines for publication of newspapers
and periodicals dealing with news and current affairs.
Earlier
In June 2005, the MIB had completely liberalized the non-news
category by enhancing the foreign investment cap, which contemplated
both FDI and FII investment, from 74 percent to 100 percent in
the case of Indian entities publishing scientific/ technical/specialty
magazines / periodicals/ journals.
Accordingly,
the Reserve Bank of India has made appropriate amendments to the
Foreign Exchange Management (Transfer or Issue of Security by
a Person Resident Outside India) Regulations, 2000 (commonly referred
to as the FDI Regulations), vide notification No. FEMA.138/2005-RB
dated July 22, 2005, whereby the previous prohibition on investments
in the print media sector by (i) Foreign Venture Capital Investors
registered with the Securities and Exchange Board of India, (ii)
FIIs under the Portfolio Investment Scheme ("PIS"), and
(iii) NRI's under the PIS or on non-repatriation basis other than
under the PIS have been removed.
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You
can direct your queries or comments to the authors
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Source: Reserve
Bank of India
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