July 23, 2010
On June 30, 2010, the Telecom Regulatory Authority of India ("TRAI") issued recommendations proposing changes to the existing policy on foreign investment in the broadcasting sector ("Recommendations") which was required in light of the amendments to the method of calculating the level of foreign investment in Indian companies as set out in the consolidated foreign direct investment policy issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India ("GoI") on March 31, 2010 ("Policy"). The Recommendations are currently with the Ministry of Information and Broadcasting for its review. It is important to note that the Recommendations have been issued by TRAI in exercise of its advisory functions, and do not have the force of law for the time being.
Summary of Recommendations:
TRAI has recommended the following changes, inter alia, to the existing foreign direct investment policy in the broadcasting sector:
 Under the foreign direct investment laws in India, the term "automatic approval" means that prior approval of the GoI is not required for the proposed investment.
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