The Government notified on Wednesday changes in the print media guidelines, approved by the Cabinet in mid-June, that seek to facilitate greater foreign presence in print media through printing of facsimile editions of foreign newspapers and periodicals, and enhancement of the syndication limits in Indian newspapers. Also, greater flexibility has been allowed in the foreign direct investment (FDI) regime for print media within the existing 26 per cent ceiling to provide more avenues to Indian entities for funds overseas.
As per the new guidelines for foreign investment in print media, investments by Non-Resident Indians, Overseas Corporate Bodies, Persons of Indian Origin and portfolio investments by recognised Foreign Institutional Investors will be permitted within the existing ceiling. Earlier, only FDI was allowed. Foreign investment will be allowed only in cases where equity held by the largest Indian shareholder is at least 51 per cent of the paid-up equity excluding that held by public sector banks and public financial institutions.
The guidelines for publishing facsimile editions of foreign newspapers mandate that the company owning the publication register itself with the Registrar of Companies and at least three-fourth of the directors on the Board of Directors of the new entity and all key executives and editorial staff be resident Indians. The facsimile edition cannot carry any advertisements aimed at Indian readers in any form. Nor can it carry any locally-generated content/India-specific content that is not simultaneously published in the original edition of the foreign newspaper.
As for the new syndication guidelines, the present limit of 7.5 per cent of the total printed area of a particular issue has been increased to 20 per cent with the stipulation that the syndicated material does not include the full copy of the editorial page or the front page of the foreign publication.
As with the earlier guidelines, there is a provision for increasing the limit on a case-to-case basis with the consent of the Information & Broadcasting Ministry.
