The Government of India on Friday clarified that the owners of original foreign newspapers willing to print facsimile Indian editions will get 100 % FDI limit. However , the FDI limit for Indian publishers printing facsimile Indian editions of foreign publications will continue to be 26 %.
“Foreign Direct Investment (FDI) is permitted in case of publication of facsimile edition of foreign newspaper. However, when the facsimile edition proposed to be published by the owner of the original foreign newspaper(s), the limit of FDI is upto 100%. In all other cases in facsimile edition of foreign newspaper(s), the FDI limit continues to be upto 26%” a Government of India release said.
The government of India on July 6,2005 had notified new norms for foreign investment in news and current affairs publications, permitting publication of facsimile edition and relaxing the syndication norms.
According to the notification, non-resident Indians, persons of Indian origin, and portfolio investments by recognised FIIs would be allowed up to a maximum of 26 per cent of paid-up equity in news and current affairs. Any foreign company owning the original foreign newspaper will be permitted to publish the facsimile edition of its newspaper, provided it is incorporated and registered as a company with the Registrar of Companies, has a commercial presence in India with its principal place of business in India and at least three-fourth of the directors on the board of the entity and all key executives and editorial staff are resident Indians.
The facsimile edition , says the notification shall not carry any advertisements aimed at Indian readers and not carry any locally generated content/India-specific content, which is not simultaneously published in the original edition of the foreign newspaper.
International Herald Tribune is the first foreign newspaper which launched its Indian .The Wall Street Journal will soon launch its Indian edition.