The government is considering allowing foreign institutional investor investment in Indian news channels and would not touch the 26 per cent sectoral cap.
"We are looking at allowing FII investment in the sector, though there is no plan to review the sectoral cap," Jaipal Reddy, Information and Broadcasting minister said.
"It is a proposal put up before me and the 26 per cent cap includes FIIs," he said at the sidelines of the launch of TeamLease's temp job network -- TLNet.
Reddy said this was being considered as part of rationalisation for allowing greater operational flexibility. He, however, refused to elaborate further and said that the proposal is being studied by the ministry.
At present, 26 per cent FDI is allowed in Indian news channel but investments by FIIs are not permitted in Indian news channels. The government is preparing a draft proposal to amend the existing news channels up-linking norms for this purpose.
This move from the government comes in the wake of various news channels pointing out that after listing channels are finding it difficult to meet the present norms as FIIs invest in them from the market.
Besides, it was also pointed out that FII investments are required for a successful listing of a company. However, the government is yet to decided whether the FII investment should be allowed only in listed companies or funds will be allowed to invest in un-listed companies also.
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