FDI Rules in Digital Media: 26% Foreign Direct Investment Cap Applies to News Agencies, Aggregators, Sites Uploading News

New Delhi, October 17: The Central government on Friday clarified the rule of 26 percent of foreign direct investment (FDI) is applicable not only to digital news media companies but also in news aggregators and news agencies which gather news, write and distribute news. The Ministry of Commerce and Industry in a press release said that the decision of permitting 26 percent FDI through government route would apply to digital media entity uploading news and current affairs, a news agency which gathers news and news aggregators.

The Centre of Friday also made it compulsory that CEO of a digital news media company should be an Indian citizen. According to the new rules, all foreign employees working for more than 60 days would need security clearance from authorities. The development came almost a year after the Central government announced a 26 percent foreign direct investment (FDI) cap under the in digital news. Govt Permits Up to 74 Pc FDI Under Automatic Route in Defence Sector.

The 26 percent FDI policy in digital media was introduced by the government last year in August. Prior to this, there was 26 percent FDI in print media and 49 percent in TV news. According to the government, digital news media looking for FDI need to have Indian citizen as the CEO, foreign employees working in the company for over 60 days need to have security clearance and the majority of the board of directors should also be India. India 9th Largest Recipient of FDI in 2019, Will Continue to Attract Investments, Says UN.

The government added that if it denies permission to foreign employees to stay in the country, their services should be terminated. These rules are also applicable to news agencies distributing news to digital media and news aggregators. These entities should comply with the new rules within a year.

The Centre also announced that the I&B ministry "will be considering" to extend certain benefits like issuing PIB cards to journalists from the digital media in the "near future". PIB accreditation for its reporters, cameramen, videographers will enable them with "better first-hand information", said the Centre while providing access including participation in official press conferences and such other interactions. It will also make them entitled for digital advertisements through the Bureau of Outreach and Communication of the government.

(The above story first appeared on LatestLY on Oct 17, 2020 11:17 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).