Business Standard: The government has allowed foreign funds, overseas corporate bodies, non-resident Indians and persons of Indian origin to invest in Indian newspaper companies. Besides, the printing of foreign editions of international publications in India has also been allowed.
However, the overall foreign investment cap in news and current affairs publications will remain at 26 per cent. Decisions to this effect were taken by the Cabinet today. The decision to permit portfolio investments in newspaper companies is expected to give them greater flexibility while raising money.
Companies like The Indian Express Newspapers (Bombay) Ltd and The Hindustan Times Ltd, which have planned IPOs, are expected to benefit from this. Besides, listed companies like Deccan Chronicle Holdings are of the view that allowing foreign funds to invest in media companies will result in them getting better valuations. The Cabinet move marks a change in the government
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