TRAI releases consultation paper on foreign investment in broadcasting sector
The Telecom Regulatory Authority of India (TRAI) has today released a consultation paper on foreign investment in broadcasting sector. Foreign investment has an important role in the economic development as an important source of funding. Foreign investment has other benefits also such as bringing in new technology, international best practices, and access to export markets.
TRAI had submitted its recommendations on Foreign Investment Limit for Broadcasting Sector on 26th April, 2008. The methodology of calculation of indirect foreign equity is based on the proportionate method in broadcasting sector.The Department of Industrial Policy & Promotion (Ministry of Commerce & Industry), Government of India has issued Press Note No 2. (2009 Series) regarding the methodology to be used for calculating foreign investment including foreign direct and indirect investment. Recognizing the need to bring in clarity, uniformity, consistency and homogeneity into the exact methodology of calculation across sectors/activities for direct and indirect foreign investment in Indian companies, the Government of Indian proposed the guidelines for calculating direct and indirect foreign investment.