MUMBAI: The Foreign Investment Promotion Board (FIPB) has put on hold New Delhi Television Ltd’s proposal to transfer part of the promoters’ (Dr Prannoy Roy and wife Radhika) shareholding to daughter Tara Roy.

The Roys had sought government clearance to gift 15 per cent of the company shareholding to non-resident Indian daughter Tara.

When the FIPB sought the information and broadcasting ministry’s opinion on the matter, it was stated that it’s not clear whether the proposed share transfer to Tara would amount to foreign direct investment or whether it would continue to fall in the category of Indian Investment.
    
It was also pointed out by the I&B ministry that after the transfer of shares, the Indian promoters’ holding in the company would fall below 51 per cent, which is a requisite to comply with norms for uplinking from India.

Interestingly, according to FIPB documents, when the chairman of the Board desired to know the existing policy of the I&B ministry on such issues, the ministry representative could not clarify the same in a recent meeting.

A decision on the issue would be taken only after clarifications are obtained from various ministries concerned, including the department of economic affairs.

The FIPB papers, available with Indiantelevision.com, indicate that Tara Roy held 13 shares of the company when she was a resident Indian and was also a member on the board of NDTV.

According to the guidelines for uplinking of news channels, permission will be granted only in cases where equity held by the India shareholder is at least 51 per cent of the total equity.

Presently, NDTV promoters Prannoy and Radhika Roy hold about 27.39 per cent equity stake each in the company, as per information available on the Bombay Stock Exchange (BSE).