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India allows 26% FDI in news publications
By agencies
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Thursday, 16 June 2005, 19:30 IST
MUMBAI: The Indian cabinet today cleared a proposal to allow foreign funds to buy shares in Indian news publications, but maintained a ceiling for foreign firms and foreign funds at 26 percent, information minister Jaipal Reddy said after a cabinet meeting.
India lifted a half-century-old ban in 2002 and allowed foreign firms to buy up to 26 percent in news publications and 74 percent in non-news titles. Earlier this month, India lifted the cap on non-news publications entirely.
The government also permitted facsimile edition of foreign newspapers without allowing them access to Indian content or advertisements.
Besides FDI in news publication, the Union Cabinet today decided to permit investment by NRIs, People of Indian Origin, Overseas Corporate Bodies (OCBs) and portfolio investments.
The cabinet has also decided to increase the syndication limit of the total printed area from the present 7.5 percent to 20 percent under the automatic route.
Reddy said while the FDI investment ceiling of 26 percent would remain, investments from other sources may be included within the same limit for the news and current affairs segments.
He said the changes would be incorporated through amendments in the PRB Act with a view to give legal backing to these decisions.