NEW DELHI: The Government has deferred a proposal by Star India Holdings, the Indian subsidiary of Rupert Murdoch’s media empire, to increase its stake in the joint venture direct-to-home (DTH) company Tata Sky.

Star India had applied for clearance from the Foreign Investment Promotion Board (FIPB) to buy a 49 per cent stake in Tata Group’s investment firm TS Investments.

Indiantelevision.com had earlier reported that TS Investments would, in turn, buy a 20 per cent stake in Tata Sky for Rs 3.24 billion. This would have effectively given Star India an additional 9.8 per cent stake in Tata Sky, increasing News Corp’s total holding in the DTH company to 29.8 per cent from its present 20 per cent.

At present, there is a cap of 20 per cent FDI in the DTH sector, while the ceiling on foreign holding is 49 per cent. However, the government made amendments to the FDI policy last year that stated that investment through companies owned and controlled by Indians would not count in the calculation of foreign investment.

Meanwhile, the Finance Ministry on the recommendations of the FIPB cleared a proposal by Zee Entertainment Enterprises Ltd (Zeel) for “transfer of shares by way of share swap and transfer of shares from NR to NR in broadcasting centre.” This would not involve any FDI/NRI inflow.

A proposal by Walt Disney Company India was also cleared to undertake additional activity of printing and publication of a speciality magazine, though the FDI inflow has not been indicated.

Network18 Media & Investment Ltd received ex-post facto approval for issue and allotment of PCCPS (partly convertible cumulative preference shares) on partly paid basis and issuance of warrants amounting to FDI/NRI inflows of Rs 239.4 million.

The government, however, deferred broadband service provider Tikona Digital Network’s proposal to enhance its FDI to 74 per cent by issuance of compulsory convertible debentures (CCDs) and equity shares to existing and new foreign investors.

Source: Indiantelevision.com