Bharati Telemedia Ltd. to seek separate FIPB approval

The Ministry of Information & Broadcasting has advised M/s Bharti Telemedia Ltd. to seek separate FIPB approval for indirect foreign investment coming into the licensee company. FIPB in its meeting held on 9th January 2009 has recommended the proposal subject to compliance with the guidelines of Ministry of Information and Broadcasting and compounding of the violation. This information was given by Shri Anand Sharma, Minister for Information and Broadcasting & External Affairs in a written reply to a question in the Parliament on Tuesday .

It was further stated in the reply that the shareholding pattern furnished by M/s Bharti Telemedia Ltd. 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% and within the foreign equity, the foreign direct investment component should not exceed 20%. 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%. The foreign investment into a DTH company as per the FDI policy of the Government requires FIPB approval.

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