Compliance of FDI policy wrt news digital media – Actions to be taken by eligible entities
November 17, 2020
The Ministry of Information and Broadcasting (I&B) has issued a public notice with respect to actions to be taken by eligible entities carrying on uploading/streaming of news and current affairs through digital media for the purpose of compliance with Press Note 4 of 2019 (refer KM Update of 19 September 2019 below) and the clarifications issued thereafter with respect to 26% FDI under the approval route.
The following actions are required to be taken by such entities:
- Entities having foreign investment below 26% should furnish the following information to the I&B Ministry within one month of the public notice, that is by 16 December 2020 :
- Details of the company / entity and its shareholding pattern along with the names and addresses of its Directors / shareholders,
- The names and address of Promoters/Significant Beneficial Owners,
- A confirmation with regard to compliance with pricing, documentation and reporting requirements under the FDI Policy, FEM (Non-debt Instruments) Rules, 2019 and FEM (Mode of Payment and Reporting of Non-debt Instruments) Regulations, 2019, along with copies of relevant reporting forms in support of the past/existing foreign investment and downstream investment(s), if any, and
- Permanent Account Number and the latest audited / unaudited Profit & Loss Statement and Balance Sheet along with the Auditor report.
- Entities having an equity structure with foreign investment exceeding 26% are required to give similar information as above within one month, that is by 16 December 2020 and also take necessary steps for bringing down the foreign investment to 26% by 15 October 2021 and seek approval of the I&B Ministry.
- Any entity intending to bring fresh foreign investment in the country [by way of subscription, acquisition, holding or transfer of any security/unit issued by a person resident in India] must seek prior approval of the Central Government, through the Foreign Investment Facilitation Portal (FIFP) of DPIIT as per the FDI policy, Press Note No. 4 of 2019 and the FEM (Non-debt Instruments)(Amendment) Rules, 2019 notified on 5 December 2019
- Every eligible entity must comply with the requirements of citizenship of Board of Directors and of the Chief Executive Officers (by whatever name called). The entities are required to obtain security clearance for all foreign personnel likely to be deployed for more than 60 days in a year by way of appointment, contract or consultancy or any other capacity, prior to their deployment. For this purpose, the entities are required to apply to the I&B Ministry at least 60 days in advance and the proposed foreign personnel shall be deployed by the entity only after prior approval of the I&B Ministry.
To refer to the public notice issued by the I&B Ministry dated 16 November 2020, click here.