The broadcasting sector in India includes FM radio services, cable networks, direct-to-home (DTH) broadcasting services and uplinking news and non-news channels. The Telecom Regulatory Authority of India (TRAI) categorizes services in the broadcasting sector as either carriage services, i.e. those that provide the medium for carrying content and information, or content services, i.e. services that provide the content that is carried on a broadcasting channel.
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The Indian government’s Department of Industrial Policy and Promotion (DIPP) recently issued circular 1 of 2010 that with effect from 1 April consolidated and rescinded all previous press notes, press releases and clarifications on foreign investment issued by the DIPP. The government proposes to update the circular on foreign investment policy once every six months. Therefore, circular 1 will be valid until the DIPP issues an updated circular on 30 September.
The limits on foreign investment in the broadcasting sector cover all types of foreign investment, including foreign direct investment (FDI), investment by foreign institutional investors (FII) and non-resident Indians (NRIs) and persons of Indian origin.
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Sandip Bhagat is a partner and Vikram Jeet Singh is an associate at S&R Associates, a New Delhi-based law firm.
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India
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