According to Indian government regulations, any entity having
more than 20 per cent equity participation in a broadcasting
company cannot have more than 20 per cent equity in a distributor
(MSO/Cable, DTH, HITS, Mobile TV) and vice- versa.
have the option to become an equal joint venture partner in
Tata Sky. But there is a cross-media regulation in India,"
Shankar tells Indiantelevision.com.
this regulation unfair? "Yes, it is. The government has
mandated digitisation in the country (by 31 December 2014)
and there will be a huge funding requirement that will not
be available locally. The recent decision to up the ceiling
on foreign direct investment to 74 per cent is a positive
step. But for global strategic investors to come in, it is
necessary to do away with cross-media restrictions. And if
strategic investors don't come in, then financial investors
will not find it that attractive. In any case, the cross-media
restriction has been violated by at least three players having
broadcast interests. It has only discouraged clean, legitimate
players," says Shankar.
2010, Star India had applied for FIPB (foreign investment
promotion board) clearance to buy a 49 per cent stake in Tata
Group's investment firm TS Investments, which would hold a
20 per cent stake in Tata Sky for Rs 3.24 billion.