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HomeArticlesBroadcast TechnologySecurity clearance must, to invite FDI
Monday, 11 September 2017 10:36

Security clearance must, to invite FDI

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Government makes changes in the FDI policy

The government on 28 August announced changes in the FDI policy for all sectors. New policy for the broadcasting sector makes it mandatory for security clearance of all senior executives, directors, Foreign consultants, collaborators etc. Permission of the Ministry is required to make any change in the appointments. The last time FDI policy was amended in June 2016


Conditions for Broadcasting Sector

FDI for Up-linking/Down-linking TV Channels will be subject to compliance with the relevant Up-linking/Down-linking Policy notified by the Ministry of Information & Broadcasting from time to time.

The foreign investment (FI) limit in companies engaged in the broadcasting activities shall include, in addition to FDI, investment by Foreign Institutional Investors (FIIs), Foreign Portfolio Investors (FPIs), Qualified Foreign Investors(QFIs), Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and convertible preference shares held by foreign entities.

Foreign investment in the broadcasting carriage services will be subject to the following security conditions/terms:


Mandatory Requirement for Key Executives of the Company

The majority of Directors on the Board of the Company shall be Indian citizens. 

The Chief Executive Officer (CEO), Chief Officer in-charge of technical network operations and Chief Security Officer should be resident Indian citizens.


Security Clearance of Personnel

 The Company, all Directors on the Board of Directors and such key executives like Managing Director/Chief Executive Officer, Chief Financial Officer (CFO), Chief Security Officer (CSO), Chief Technical Officer (CTO), Chief Operating Officer (COO), shareholders who individually hold 10% or more paid-up capital in the company and any other category, as may be specified by the Ministry of Information and Broadcasting from time to time, shall require to be security cleared.

 All the new appointments or any change in the appointment of key executives and directors will be pre-approved by the MIB.

The Company shall be required to obtain security clearance of all foreign personnel likely to be deployed for more than 60 days in a year by way of appointment, contract, and consultancy or in any other capacity for installation, maintenance, operation or any other services prior to their deployment. The security clearance shall be required to be obtained every two years.


Permission vis-à-vis Security Clearance

The permission shall be subject to permission holder/licensee remaining security cleared throughout the currency of permission, else the permission is liable to be terminated forthwith.

In the event of security clearance of any of the persons associated with the permission holder/licensee or foreign personnel being denied or withdrawn the permission holder/licensee will ensure that the concerned person resigns or his services terminated forthwith. 


Infrastructure/Network/Software related requirement

The officers/officials of the licensee companies dealing with the lawful interception of services will be resident India citizens.

Details of infrastructure/network diagram (technical details of the network) could be provided, on a need basis only, to equipment suppliers/manufactures and the affiliate of the licensee company. Clearance from the licensor would be required if such information is to be provided to anybody else.

The Company shall not transfer the subscribers’ databases to any person/place outside India unless permitted by relevant law. The Company must provide traceable identity of their subscribers.


Monitoring, Inspection and Submission of Information

The Company should ensure that necessary provision (hardware/software) is available in their equipment for doing the lawful interception and monitoring from a centralized location as and when required by Government.

The Government representative shall have the right to inspect the broadcasting facilities any time it is required. 

The company shall submit such information with respect to its services as may be required by the Government in the format as may be required, from time to time.

The permission holder/licensee shall be liable to furnish the Government of India or its authorized representative or TRAI or its authorized representative, such reports, accounts, estimates, returns or such other relevant information and at such periodic intervals or such times as may be required.


National Security Conditions

It shall be open to the licensor to restrict the Licensee Company from operating in any sensitive area from the National Security angle. The MIB shall have the right to temporarily suspend the permission of the permission holder/Licensee in public interest or for national security for such period or periods as it may direct. 

The company shall not import or utilize any equipment, which are identified as unlawful and/or render network security vulnerable.

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