A recent Union Cabinet approval has permitted foreign investment in Indian print media and facsimile editions of foreign newspapers, apart from hiking syndication levels to 20%. Till now, only foreign direct investment up to 26% was allowed in the print media but the revised guidelines permit investments by foreign institutional investors, PIOs, and NRIs, though sticking to the same FDI cap.

However permission will be granted only in cases where equity held by the largest Indian shareholder is at least 51% of the paid-up equity, excluding the equity held by public sector banks and public financial institutions. At least 50% of the foreign direct investment will have to be inducted by issue of fresh equity. The balance may be inducted through transfer of existing equity.

On facsimile editions of foreign newspapers, the revised guidelines stipulate that any foreign company owning the original foreign newspaper will be permitted to publish it provided it is incorporated and registered in India and at least three-fourths of the directors on its board and all key executives and editorial staff are resident Indians. The guidelines state that “It should have a commercial presence in India with its principal place of business in the country.” Importantly, the facsimile edition shall not carry any advertisements aimed at Indian readers in any form and also any locally-generated or India-specific content, which is not simultaneously published in the original edition of foreign newspaper.

On syndication arrangements, which include photographs, cartoons, crossword puzzles, articles and features from foreign publications (content provider), it said these have been hiked from 7.5% to 20% of the total content. The syndicated material should not include full copy of the editorial page or the front page of the foreign publication and the masthead of the content provider should also not be utilised in the Indian publication. Credit to the content provider has to be given prominently as a byline in the Indian publication. The material procured under syndication arrangement should be such as has already been published in the content provider publication.