New Delhi: After the government's recent go ahead to foreign investment to an extent of 26 per cent for launching Indian editions of foreign magazines, it issued detailed guidelines today for the benefit of interested parties.

The ceiling of total Foreign Direct Investment (FDI) which includes FDI by NRIs, Persons of Indian Origin (PIOs) and portfolio investments by recognised Foreign Institutional Investors (FIIs) put together is up to 26 per cent, as per the provisions of the guidelines issued by the Ministry of Information and Broadcasting periodically.

The Indian entity of the foreign publication would be required to be registered with the Registrar of Newspapers for India (RNI) under the Press and Registration of Books Act before they attract foreign investment.

Once registered, the Indian companies would be allowed to enter into financial arrangements (such as royalty payment arrangements, or any other) with the owners of the foreign magazines.

The guidelines binds that at least 3/4th of the Board of Directors of the Applicant Indian Company and all its key executives and editorial staff should be resident Indians.

It further states that if the company wants to change the composition of resident Indian Directors or key executives and editorial staff, then it can do so with post facto approval of the Ministry of Information and Broadcasting.

While the Indian publisher would be allowed to publish local content and advertisements, the guidelines also allow for 100 per cent identical content of the foreign magazine concerned, with approval from the regulatory authority of the Government of the origin country.

The IB ministry will judge all new applications on the basis of inter-ministerial consultation with the Ministry of Home Affairs, Ministry of External Affairs, Department of Industrial Policy and Promotion, Ministry of Corporate Affairs and other ministries.

Source : PTI