Photo of Varun Sehgal

Partner in the Corporate Practice at the New Delhi office Cyril Amarchand Mangaldas. Varun has more than 14 years of work experience and have advised several multinational and domestic clients in relation to cross border investments, M&A transactions, commercial contracts and general corporate matters across various sectors. Varun has also advised clients on multi-brand & single brand retail trade, e-commerce and public-procurement transactions in India. In addition to investments advisory, he has advised clients on pre-litigation contractual disputes and exit options and strategies.

Varun is a member of the Japan desk of the firm with focus on serving Japanese clients. Varun was seconded to Anderson Mori & Tomotsune, Tokyo, where he worked with the India Practice Group to advise Japanese clients on their India related investments and business operations. Varun has conducted seminars in Tokyo and Osaka in relation to legal and regulatory issues faced by Japanese companies in India. He can be reached at varun.sehgal@cyrilshroff.com

FDI IN DIGITAL MEDIA - A CASE FOR FURTHER CLARIFICATION

 

The Government of India recently issued a clarification on FDI in digital media sector. The pre-cursor to this clarification is Press Note 4 of 2019 (“Press Note 4”) that allowed up to 26% FDI in entities engaged in uploading/ streaming of news and current affairs through digital media platforms under the Government approval route, similar to the print media sector. We have analysed the implications of the recent clarifications on entities that are engaged in the digital media sector.

Press Note 4 did not provide a definition of “Digital Media” and accordingly there were concerns regarding entities that fall within its ambit. The Government of India therefore issued the “Clarification on FDI Policy for uploading/streaming of news and current affairs through Digital Media” on October 16, 2020 (“Clarification”). The Clarification inter alia provides that Press Note 4 shall apply to the following types of entities registered or located in India:
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