India’s Proposed Broadcasting Rules 2026 Put Ownership in Focus for Investors

India has proposed Telecommunications (Television, Radio and Associated Services) Rules 2026, which seeks to consolidate the regulatory framework for television, radio, and related broadcasting services. For investors, the proposed rules are important because they introduce requirements covering foreign investment, equity ownership, cross-holdings, Indian ownership, financial capacity, and changes in control.

The draft released on 3 September 2026 does not establish a uniform foreign direct investment (FDI) ceiling across broadcasting activities. Instead, investors must comply with the applicable foreign investment framework while also meeting sector-specific ownership and control conditions under the proposed rules.

Foreign investment in broadcasting remains subject to FEMA

Applicants for television channels, television distribution services, teleports, television news agencies, private radio, and community radio must comply with foreign investment requirements under FEMA, 1999, and the FEMA (Non-Debt Instruments) Rules, 2019. The draft itself does not prescribe a blanket FDI percentage for these services.

This distinction is important for foreign investors. Compliance with the proposed broadcasting rules does not replace India’s applicable FDI regime. Investors will therefore need to assess the foreign investment rules relevant to the specific broadcasting activity alongside the ownership restrictions contained in the draft.

20 per cent cross-ownership limits for TV, DTH, and HITS

The Telecommunications (Television, Radio and Associated Services) Rules 2026 draft introduces specific 20 per cent equity cross-ownership restrictions between television channels, DTH, and HITS services. These restrictions should not be confused with FDI limits.

For example:

• A television channel entity, individually or together with a multi-system operator (MSO), cannot hold more than 20 per cent equity in a DTH entity.
• DTH applicant cannot hold more than 20 per cent equity in a television channel entity or MSO.
• A television channel entity, individually or together with a direct-to-home (DTH) entity, cannot hold more than 20 per cent equity in a headend-in-the-sky (HITS) entity.
• A HITS applicant cannot hold more than 20 per cent equity in a television channel or DTH entity.

The draft also applies the 20 per cent threshold to certain investments held across HITS, television, and DTH entities. For these provisions, direct and indirect shareholding is taken into account. Financial institutional investors are excluded from the relevant restrictions.

For investors with interests across multiple broadcasting businesses, this means that the proposed investment structure may need to be assessed across the wider corporate group rather than on a company-by-company basis.

Private radio requires 51 per cent Indian ownership

Private radio is subject to a separate ownership requirement in India. The draft provides that the largest Indian shareholder must hold at least 51 per cent of the total equity of the applicant. Equity held by scheduled banks and public financial institutions is excluded when calculating this requirement.

The rules provide detailed criteria for determining the largest Indian shareholder. These criteria allow certain individuals, relatives, Indian companies, or groups of Indian companies under common management and ownership control to be considered together. Where multiple parties are combined for this purpose, they must have a legally binding agreement to act as a single unit in managing the applicant company.

This requirement is particularly relevant to foreign investors considering joint ventures or other partnership structures in India’s private radio sector.

Additional ownership restrictions for private radio

The proposed framework also restricts certain ownership and corporate relationships in private radio.

A private radio applicant cannot be controlled by or associated with:

1. Trust
2. Society
3. Non-profit organisation
4. Religious body
5. Political body

It also cannot operate as, or be associated with or controlled by, an advertising agency.

The draft further restricts common ownership between private radio operators in the same service area. An applicant cannot be a subsidiary, holding company, or affiliate of another authorised private radio entity operating in the same service area, nor can it be owned or controlled by persons with a beneficial interest in another authorised private radio entity in that area.

Minimum net worth for market entry

The proposed rules also establish financial thresholds that investors must meet before obtaining certain broadcasting authorisations. The applicant must satisfy the applicable minimum net-worth requirement for the financial year immediately preceding the application year.

For private radio, the requirement varies according to the category and geographical spread of the cities served. It ranges from INR 5 million for D-category cities to INR 30 million for A+/A-category cities, with a ceiling of INR 100 million where operations extend across all regions.

These requirements make financial capacity an important consideration when evaluating the capital structure and timing of a proposed broadcasting investment.

Changes in shareholding, FDI, and control

Investment compliance continues after the initial authorisation. Under the proposed rules, an authorised entity must notify the central government of any change in shareholding, partnership, or FDI within 30 days of the change. Changes in ownership or control and other specified material information generally have to be reported within 15 days.

More importantly, an ownership change that results in a change in control or a complete change in management requires prior written permission from the central government. This could affect acquisitions, strategic investments, joint-venture restructurings, and other transactions that alter control of an authorised broadcasting entity.

Investment implications for transfers and exits

The proposed rules also affect investors planning to transfer or restructure their broadcasting interests.

Television channel, teleport, and private radio authorisations can be transferred only after the applicable lock-in period and with prior central government approval. The proposed lock-in period is one year for television channels and teleports and three years for private radio.

Permitted transfers include certain mergers, demergers, amalgamations, transfers of a business or undertaking under applicable law, and transfers within a group company. The transferee must independently satisfy the applicable eligibility and net-worth requirements.

This makes the proposed framework relevant not only when entering the broadcasting sector but also when planning acquisitions, group reorganisations, investments, and eventual exits.

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What foreign investors should consider

For investors evaluating India’s broadcasting sector, the proposed rules create several investment-structuring considerations:

1. Applicable FDI rules: Determine the foreign investment requirements applicable to the specific broadcasting activity
2. Indian ownership: Assess the 51 per cent largest-Indian-shareholder requirement for private radio
3. Cross-ownership: Review existing and proposed interests in television, DTH, HITS, and MSO businesses against the 20 per cent restrictions
4. Group structures: Consider direct and indirect shareholding where the rules require aggregation
5. Financial capacity: Ensure the proposed entity meets the applicable minimum net-worth threshold
6. Change of control: Identify transactions that could require prior approval from the central government
7. Transfer restrictions: Factor in lock-in periods and approval requirements when evaluating acquisition or exit strategies

Key takeaway for investors

The proposed Telecommunications (Television, Radio and Associated Services) Rules 2026 do not introduce a single FDI cap for India’s broadcasting industry. Instead, they combine the applicable foreign investment regime with additional rules governing ownership, crossholdings, Indian participation, financial capacity, and changes in control.

For foreign investors, the most significant considerations are the 20 per cent cross-ownership restrictions for TV, DTH, and HITS, the 51 per cent Indian ownership requirement for private radio, and the approval and reporting requirements that can apply when an investment changes ownership or control.

The rules remain a draft framework and will come into force only on a date separately notified by the central government.