The eligibility criteria in the guidelines
for uplinking of news and current affairs TV channels
from India have been revised as follows. Other provisions
in the guidelines issued on 26th March
2003 remain unchanged.
II. ELIGIBILITY CRITERIA
An applicant company desirous of uplinking
news and current affairs channel(s) from India will
be considered eligible, if it fulfils the following
criteria:-
(A)
It is a registered/ incorporated in India
under the Companies Act, 1956.
(B)
Foreign Direct Investment(FDI) shall not
exceed 26% of the Paid-up Equity of the applicant
company.
(C)
Permission will be granted only in cases
where equity held by the largest Indian shareholder
is at least 51% of the total 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.
The term largest Indian shareholder,
used in this clause, will include any or a combination
of the following:
(1) In the
case of an individual shareholder,
(a)
The individual
shareholder.
(b)
A relative
of the shareholder within the meaning of Section
6 of the Companies Act, 1956.
(c)
A company/ group of companies in which the
individual shareholder/HUF to which he belongs has
management and controlling interest.
(2) In the
case of an Indian company,
(a)
The Indian company
(b)
A group of Indian companies under the same
management and ownership control.
For the purpose of this Clause, “Indian
company” shall be a company, which must have a resident
Indian or a relative as defined under Section 6
of the Companies Act, 1956/ HUF, either singly or
in combination holding at least 51% of the shares.
Provided that in case of a combination
of all or any of the entities mentioned in Sub-Clause
(1) and (2) above, each of the parties shall have
entered into a legally binding agreement to act
as a single unit in managing the matters of the
applicant company.
(D)
While calculating the 26% FDI in the equity
of the applicant company, the foreign holding component,
if any, in the equity of the Indian shareholder
companies of the applicant company will be duly
reckoned on pro rata basis so as to arrive at the
total foreign holding in the applicant company.
(E)
The company shall make full disclosure, at
the time of application, of Shareholders Agreements,
Loan Agreements and such other Agreements that are
finalized or are proposed to be entered into. Any subsequent changes in these
would be disclosed to the Ministry of Information
and Broadcasting, within 15 days of any changes,
having a bearing on the foregoing Agreements.
(F)
It will be obligatory on the part of the
company to take prior permission from the Ministry
of Information and Broadcasting before effecting
any alteration in the foreign shareholding patterns
and the shareholding of the largest Indian shareholders,
as indicated in Clause (C) above or any alteration
in any other Agreements, as indicated in Clause
(E) above.
(G)
The applicant shall be required to intimate
the names and details of all persons, not being
resident Indians, who are proposed to be inducted
in the Board of Directors of the company.
(H)
The company shall be liable to intimate the
names and details of any foreigners/ NRIs to be employed/
engaged in the company either as Consultants (or
in any other capacity) for more than 60 days in
a year, or, as regular employees.
(I)
At least 3/4th of the Directors
on the Board of Directors of the company and all
key Executives and Editorial staff shall be resident
Indians.
(J)
The representation on the Board of Directors
of the company shall as far as possible be proportionate
to the shareholding.
(K)
All appointments of key personnel (executive
and editorial) shall be made by the applicant company
without any reference on from any other company,
Indian or foreign.
(L)
The applicant company must have complete
management control, operational independence and
control over its resources and assets and must have
adequate financial strength for running a news and
current affairs TV channel.
(M)
CEO of the applicant company, known by any
designation, and/ or Head of the channel, shall
be a resident Indian.
