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Foreign Direct Investment (which includes foreign direct investments by NRIs, PIOs) and portfolio investments by recognized FIIs are allowed, together up to a ceiling of 26% of paid up equity capital, in Indian entities publishing newspapers and periodicals dealing with news and current affairs.

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Such investment would be permissible by foreign entities having sound credentials and international standing, subject to certain conditions.

Government has allowed facsimile editions, in whole or in part (s), of foreign newspapers, by Indian entities, with or without foreign investment, and also by foreign companies owning the original newspaper, provided they get incorporated and registered in India under the Companies Act, 1956.

Foreign Investment in Indian entities publishing newspapers and periodicals dealing with news and current affairs

Foreign Investment will be allowed only where the resultant entity (hereinafter called “New Entity”) is a company registered with the Registrar of Companies under the provisions of the Companies Act, 1956.

Foreign Investment including FDI by foreign entities, NRIs, PIOs etc and portfolio investments by recognized FIIs, will be allowed up to a maximum of 26% of paid-up equity of the New Entity.

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 as defined in Section 4A of the Companies Act, 1956, in the New Entity.

While calculating the 26% foreign investment in the equity of the New Entity, the foreign holding component, if any, in the equity of the Indian shareholder companies of the New Entity will be duly reckoned on pro rata basis so as to arrive at the total foreign holding in the New Entity.

At least 50% of the foreign direct investment will have to be inducted by issue of fresh equity. The balance, viz. upto 50% of the foreign direct investment, may be inducted through transfer of existing equity.

Permission would be conditional on at least 3/4th of the Directors on the Board of Directors of the New Entity and all key executives and editorial staff being resident Indians.

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