Digital Media Companies Running News To Comply With FER
Digital media companies running news got a month’s time to comply with foreign equity rules.
The government on Monday issued new guidelines for companies publishing/broadcasting news or current affairs through digital media.
Under this, they have been given one month’s time to comply with the Foreign Direct Investment (FDI) rules.
The Ministry of Information and Broadcasting issued these instructions on Monday. Foreign shareholding up to 26 percent has been exempted in such companies.
The ministry has said in the notices issued to news portals, websites, and news agencies that the relevant bodies will have to execute the guidelines within a month.
The Ministry has given details of the guidelines in the notice which are to be followed. It is worth mentioning that the government issued instructions on FDI in digital medium on 18 September 2019.
“Bodies, where FDI is less than 26 percent, will have to report to the Ministry of Information and Broadcasting within a month,” the notice said.
The information should include the name and address of the directors and shareholders along with the information about the company and its shareholding. “
The ministry has also asked such bodies to give the names and addresses of their promoters and important beneficiary owners.
Compliance with the provisions of pricing, documenting and informing these bodies under the FDI Policy.
Foreign Exchange Management (Non-Debt Securities) Rules 2019 and Foreign Exchange Management (manner of payment and submission of statements of non-debt securities) Regulations 2019.
“The bodies which currently have FDI in excess of the 26 percent limit will also have to give all the information to the ministry within a month from today,” the notice said.
These bodies will have to take necessary steps to get FDI below 26 percent by 15 October 2021 and get approval from the ministry. “
The government issued the notice at a time when the Supreme Court had given notice to the central government a month ago on a Public Interest Litigation (PIL) filed for the regulation of OTT forums like Netflix and Amazon Prime.
The government has recently brought OTT platforms such as Netflix, Amazon Prime Video, and Disney + Hotstar and online news and current affairs portals under the Ministry of Information and Broadcasting.
