News aggregators, information companies which provide info to digital media companies and firms importing information and present affairs on web sites should adjust to the 26 per cent overseas funding cap, the federal government stated on Friday.
These corporations “would be required to align their FDI to the 26 per cent level with the approval of the central government, within one year from the date of issue of this clarification”, the Department for Promotion of Industry and Internal Trade (DPIIT) stated.
In August final yr, the Union Cabinet accredited 26 per cent FDI (overseas direct funding) underneath authorities route for importing/streaming of reports and present affairs via digital media, on the traces of print media.
A piece of trade gamers and consultants had acknowledged that the transfer to cap FDI in digital media sector to 26 per cent throws up questions that want clarifications.
The division stated that it had acquired representations from stakeholders looking for clarifications on sure elements of this determination.
“After due consultations, it is clarified (that) the decision of permitting 26 per cent FDI through government route would apply” to sure “categories of Indian entities, registered or located in India,” it stated.
The classes are – entities importing / streaming information and present affairs on web sites, apps, different platforms; information companies which gathers, writes and distributes/transmits information, straight or not directly, to digital media entities and/or information aggregators; information aggregators which, utilizing software program / net purposes, aggregates information content material from varied sources, equivalent to information web sites, blogs, podcasts, video blogs, in a single location.
It additionally stated that the compliance with the FDI coverage could be the accountability of the investee firm.
The firm would even have to stick to sure circumstances equivalent to the bulk administrators on the board of the agency shall be Indian residents; the chief govt officer shall be an Indian.
“The entity shall be required to obtain security clearance of all foreign personnel likely to be deployed for more than 60 days in a year by way of appointment, contract or consultancy or in any other capacity for functioning of the entity prior to their deployment,” it stated.
It added that within the occasion of safety clearance of any of the overseas personnel being denied or withdrawn for any causes by any means, the investee agency will be certain that the involved particular person resigns or his/her companies are terminated forthwith after receiving such directives from the federal government.
(Except for the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)