In June, India’s Foreign Investment Promotion Board (FIPB) had approval a total of 6 proposals in the Broadcasting, Information & Technology, Telecom and Media sectors. Going with the trend the Government in accordance with the FIPB has approved six, deferred five and rejected one after the FIPB’s meeting held on October 9, 2009.
The Government has deferred Verizon Communications proposal to transfer equity shares from non-resident shareholder to non-resident group in Telecom Sector. According to Business Standard, the FIPB has sought inputs on Verizons operations in Pakistan. Verizon Asia Pacific Holdings Ltd wishes to transfer 1,000 equity shares in Verizon India to Verizon European Holdings Ltd, UK, as part of a group restructuring. More at Business Standard.
Sify Technologies’ merger with Sify Communications, which has been approved by the High Court of Madras, has been deferred by the FIPB. Sify Technologies Ltd has an ISP license in India, and Sify Communications has an NLD/ILD license. With the merger, a single entity will own both the licenses, and hence will not have to pay any carriage fee for offering calling cards and VoIP services, or even offer VoIP as a significant value-add over its WiMax/Broadband services.
Sahara One Media and Entertainment Ltd has Ex-post-facto approval for foreign investment by NRIs and FIIs to carry out the activities relating to entertainment media and motion pictures.
Travel Channel International Ltd, United Kingdom is to set up a wholly owned subsidiary to undertake downlink of non-news television channels(s) in India with an investment of Rs 42 million. Indiantelevision.com has more details.
Images Multimedia Pvt. Ltd has been allowed to issue equity shares to foreign investor to undertake publication of speciality magazines in the fashion and retail industry, managements of events focusing on fashion and retail sector with an investment of Rs 7.6 million
Cable & Wireless
Cable and Wireless Networks India Pvt. Ltd is to provide Internet (with telephony)(ISP) license with companies international gateway (both for satellite and submarine cable) telecommunications services in India as an additional activity as part of the existing joint venture.
Dainik Bhaskar & Synergy Media
D.B. Corp Ltd. The company intends to make an initial public offering, including an offer for sale from existing promoters up to 26% of post-IPO paid up share capital. Synergy Media, the radio arm of the Dainik Bhaskar Group has been approved to increase the foreign shareholding of the paid equity share capital to carry out the activities relating to FM Radio Broadcasting in various circles in India.
ByCell Telecommunication’s proposal has been rejected in the light of the High Court’s directions that any representation made by ByCell is to be considered by FIPB in light of MHA’s objections to security credentials of the company. The Government had deferred it twice earlier.
Premiere Global Services
The Government had earlier announced that it would allow 100 per cent FDI on Tele-Conferencing and Web-Conferencing Services provided a clearance from the FIPB. Premiere Conferencing (Ireland)an affiliate of NYSE listed Premiere Global Services, had applied to set up a wholly owned subsidiary in India to provide audio/ web conferencing and collaboration services and data. Their application has been deferred.