The Ministry of Information and Broadcasting has asked digital news media outlet to adhere with condition that allows them for a 26% FDI (Foreign Direct Investment) which was approved by the Union Cabinet in 2019.
In an issued statement, the Ministry of Information and Broadcasting sought compliance with its earlier orders from digital news portal and websites, aggregators, and agencies.
Companies with FDI below 26 percent need to inform the ministry within the coming month, entailing the shareholders’ pattern, names of directors, and promoters. The company needs to adhere to pricing, documentation, and reporting requirements under the FDI policy, and Foreign Exchange Management Rules, PAN, and audited accounts reports.
In contrast, the company’s with FDI exceeding 26 percent need to furnish the same details and take necessary steps to bring the FDI down by 15 October 2021 and seek MIB approval.
Moreover, any company that brings fresh foreign investment into the country need to seek prior approval from the central government through the Foreign Investment Facilitation Portal of the Department for Promotion of Industry and Internal Trade.
Last month, the ministry clarified that digital news portals need to comply with certain conditions like the majority of directors on the board and its chief executive officer being Indian citizens. They need to obtain security clearance for foreign deployed for more than 60 days by way of appointment, consultancy, and contract.
