Cabinet clears increase in FDI cap for broadcasting sector

The Cabinet Committee on Economic Affairs today approved the proposal of I&B Ministry to increase the FDI cap in broadcasting to 74% in cable TV services, DTH and HITS keeping the FDI in News and current affair channels to 26%. 

Earlier, 49 per cent FDI was allowed in cable TV and DTH, and 74 per cent in HITS. This is likely to attract FDI in MSO companies and help them to digitalise before the deadline of 31 Oct 2012. This may also increase monopolies of some large media groups who enjoy vertical monopolies in the sector through their TV channels, DTH and MSO networks. 

Even before the cabinet had cleared the new FDI caps in broadcasting, the shares of Den Networks and Hathway Cable & Datacom had touched 52-week high on Sep 13, 2012. 

The 52-week high for Den Networks was Rs 148.85, whereas the Hathway Cable 52-week high stands at Rs 226.90. The shares of direct to home company Dish TV also increased 2.4% to Rs 74.20.

Source: http://cablequest.org/news/government-news/item/1583-cabinet-clears-increase-in-fdi-cap-for-broadcasting-sector.htmlSource: http://cablequest.org/news/government-news/item/1583-cabinet-clears-increase-in-fdi-cap-for-broadcasting-sector.html