I&B Ministry seeks compliance of FDI rules for digital media in a month

Amitha Muraleedharan

The I&B Ministry (Information and Broadcasting) has issued a notice to eligible entities that upload news via digital media to comply with a previous announcement in which the Centre had permitted 26% foreign direct investment under the government approval route.

As per the notice, entities comprising foreign investment less than 26% may provide an intimation to the Ministry of Information & Broadcasting within one month, along with giving details of the company and its shareholders.

It has asked the entities to furnish details under the FDI policy, Foreign Exchange Management (Non-debt Instruments) Rules, 2019, and Foreign Exchange Management (Mode of Payment and Reporting of Non-debt Instruments) Regulations, 2019.

Earlies, the government had brought OTT (Over-the-top) platforms like Netflix, Amazon Prime Video, etc., along with news and current affairs content on the online platform under the I&B Ministry.

Therefore, the ministry now holds the power to regulate policies related to news and content on online platforms.

Under the FDI policy, prior approval of the Centre through the foreign investment facilitation portal of DPIIT is necessary for an entity that intends to draw foreign investment in the country.