The information & broadcasting (I&B) ministry has put on hold the proposals of at least half-a-dozen broadcasters to start or add news channels since it wants the finance ministry to first vet the overall foreign investment—direct and indirect—-in these companies.

At present, there is a 26 per cent cap on foreign direct investment (FDI) in news channels. The I&B ministry has sought clarity on foreign institutional investor holdings in these broadcasters, given the government’s skittishness regarding overseas ownership of broadcast news. Sources said the I&B ministry felt only the finance ministry had the necessary wherewithal to ensure that foreign investment caps were not breached.

The government is reviewing FDI rules to bring transparency and clarity to indirect shareholdings to ensure that companies do not breach FDI caps. .

According to finance ministry and FIPB sources, the I&B referred news channel cases will only be taken up once new norms governing FDI have been finalised. Meanwhile, the decision by the I&B ministry is likely to delay the launch of around 30 news and current affairs channels, which are awaiting approval.