Regulators

Broadcasters, teleports warned on forex payments without I&B permission

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NEW DELHI: The government has warned broadcast companies and teleport operators who have obtained permission for services of foreign satellites without prior approval of the Information and Broadcasting Ministry for remittance in foreign exchange of hiring charges which is mandatory under a circular of the Finance Ministry of September 2004.

Ministry joint secretary (Broadcasting) Supriya Sahu in an advisory reiterated the need and importance for seeking prior approval of the Ministry for making payments in foreign exchange towards hiring of transponders of foreign satellites and complying with the existing provisions of the Reserve Bank of India in this regard.

She stressed that the I&B Ministry is the administrative Ministry for granting permission to remittance of Forex for hiring charges of transponders on foreign satellites by TV channels/ teleports.

She said that in view of this, all broadcast companies and teleport operators are advised to strictly follow the guidelines under the provisions of the Foreign Exchange Management Act 1999. Any proposal seeking approval of the Ministry should be submitted at least 30 days in advance of the date before which the payment is due.

She drew attention of the broadcasters to the Reserve Bank of India Circular of October 2004 wherein authorised dealer banks had been apprised that proposals for remittance of hiring charges of transponders by TV channels would require prior approval of the Ministry. The circular also stressed on the authorised dealer banks to bring the contents of the circular to the notice of their constituents and customers for ensuring compliance of the provision of the FEMA Act.

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