BBC World India is undergoing shareholding changes to align with FDI regulations, aiming for compliance by the end of FY24
Undergoing a shareholding restructuring, BBC World Service India, which is primarily owned by the British Broadcasting Corporation (BBC) at 99.99 per cent, is adjusting its ownership composition to adhere to the Indian government's foreign direct investment (FDI) guidelines, as per a report by the Economic Times. These regulations stipulate a maximum foreign ownership limit of 26 per cent for digital news entities.
Jonathan Munro, the deputy chief executive of BBC News, is expected to announce the monetary alteration in ownership structure soon, as per sources cited by ET.
BBC World Service India revealed in regulatory filings that it had received a letter from the Ministry of Information and Broadcasting on March 31, citing potential non-compliance with FDI norms. The company has requested an extension until March 31, 2024, for compliance and has communicated its restructuring plans with the ministry.
According to sources familiar with the matter, BBC World Service India is exploring the option of offering ownership stakes to key executives, such as Rupa Jha, who heads BBC News India, Mukesh Sharma, in charge of African language services at BBC News and Sanjoy Mazumdar, serving as the deputy managing editor for Asia at BBC World Service.
In September 2019, the Department for Promotion of Industry and Internal Trade (DPIIT) limited foreign direct investment (FDI) in digital news to 26 per cent, in September 2019.
On November 16, 2020, the broadcasting ministry released a public notice instructing all qualifying digital news entities with foreign investment exceeding 26 per cent to initiate measures to reduce the foreign investment to 26 per cent by October 15, 2021.