Foreign Investment cap hiked to 74 percent for Broadcasting Services

The Government of India on 20 September 2012 hiked the foreign investment cap for the broadcasting service providers to 74 percent. The registered hike in foreign investment cap is for service providers of Direct to Home (DTH), modernized cable network and mobile television. This move of the government will allow the global players in acquiring major stakes in the broadcasting companies. Before his decision was passed, the eligibility of DTH and multi-system cable operators to make foreign investment was limited to 49 percent only.

In its decision last week, the Cabinet Committee on Economic Affairs cleared its stand on the companies of broadcast content that the TV news Channels and FM radio channels can have a foreign investment cap of 26 percent. This decision was made to make sure that majority of control remains back in the hands of Indian Partner.