Over-the-top platforms not covered by the 26 per cent FDI cap

On 10 March 2023, the Ministry of Information and Broadcasting (MIB) issued a clarification on whether the Foreign Direct Investment (FDI) Policy of the Government of India is applicable to Over-the-Top (OTT) platforms hosting digital feed to the news channels. The ministry clarified that when an OTT platform is hosting digital feed of a TV news channel granted permission under the Uplinking & Downlinking Guidelines, only as a medium and makes it available to its subscribers/users, such an OTT platform is not covered under the 26% FDI rule.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Services (Publishing, audiovisual and broadcasting activities)

• Sources:

  • Government of India, Applicability of FDI Policy of Government of India for OTT Platforms, https://mib.gov.in/sites/default/files/Applicability%20of%20FDI%20Policy%20for%20OTT%20Platforms%20hosting%20TV%20News%20Channels%2010.03.2023_compressed%20%281%29.pdf, 10 Mar 2023
  • taxguru, Clarification on FDI Policy of Government of India on OTT Platforms , https://taxguru.in/corporate-law/clarification-fdi-policy-government-india-ott-platforms.html, 10 Apr 2023
  • livemint, No FDI limit for OTTs brings clarity to broadcasters, https://www.livemint.com/industry/media/no-fdi-limit-for-otts-brings-clarity-to-broadcasters-11679510162941.html, 23 Mar 2023