The inter-ministerial group set up to review the guidelines on foreign direct investment in news channels may consider a proposal for mandatory clauses in joint venture agreements between Indian and foreign broadcasters stating that editorial and management control will be in the hands of Indians. This is expected to strengthen the existing policy on FDI in news channels uplinking from India.
The inter-ministerial group may also look at another safeguard -- a proposal to prescribe in the articles of association of the company that Indian shareholders will have the final say in management and editorial issues.
The inter-ministerial group is also likely to consider the golden share route as one of the options to ensure that the ownership, management and editorial control of news channels will remain in Indian hands after a 26 per cent equity infusion by foreign partners.
"The inter-ministerial group is currently discussing the various options. It is yet to finalise the suggestions," a government official said.
The inter-ministerial group may also consider options like limiting the number of investments by a foreign company in India to restrict its role in the country.
According to the order on the inter-ministerial group issued earlier this week, it will look into the various aspects of FDI in broadcasting, particularly in the uplinking of news, to prevent violations and plug possible loopholes in existing laws. The group will also look into issues related to cross-media holdings.
The inter-ministerial group will ensure that rules are not violated and companies comply with the 26 per cent foreign equity cap "in letter and spirit".
The inter-ministerial group is also expected to take up the issue of a dominant Indian partner in a news broadcasting venture.
As per this proposal, Indian shareholding in a news broadcasting company should not be dispersed and the single largest Indian shareholder must hold substantially over 26 per cent stake in the company.
This is to ensure that the management control remains with the Indian shareholder.
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Plugging holes
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