MUMBAI: Bharti Telemedia has been advised by the Ministry of Information & Broadcasting to seek separate FIPB approval for indirect foreign investment coming into the licensee company.
FIPB in its meeting held on 9 January, 2009 recommended the proposal subject to compliance with the guidelines of Ministry of Information and Broadcasting and compounding of the violation.
Minister for Information and Broadcasting & External Affairs Anand Sharma said that the shareholding pattern furnished by Bharti Telemedia revealed that the DTH licensee did not have any FIPB approval for foreign investment coming into it through investing companies, which was not in accordance with the existing FDI policy. The licensee was therefore required to show cause why action should not be taken against it for violation of DTH license conditions.
DTH Guidelines provide that total foreign equity holding including FDI/NRI/OCB/FII in the applicant company should not exceed 49 per cent and within the foreign equity, the foreign direct investment component should not exceed 20 per cent. The quantum represented by that proportion of the paid up equity share capital to the total issued equity capital of the Indian promoter company, held or controlled by the foreign investors through FDI/NRI/OCB investments, shall form part of the above said FDI limit of 20 per cent. The foreign investment into a DTH company as per the FDI policy of the Government requires FIPB approval.