Nod likely for Tata Sky's new shareholding structure

Tata Sky, a joint venture between the Tata Group and Rupert Murdoch's STAR, is likely to get clearance from the government soon for its new shareholding structure where Tata Communications Ltd and Singapore-based Omega TC Holdings will collectively hold more than 43 per cent in the loss-making direct-to-home firm. In a recent communication, Attorney General G E Vahanvati noted that Tata Sky's proposal complies with the guidelines on Indian management control.

The proposal also complies with the department of industrial policy and Promotion guidelines on direct and indirect control in respect to the foreign investment, it noted. According to Tata Sky's proposed new structure, submitted on December 19, 2012, six out of the 11 directors of the company will be appointed by Tata Sons Ltd and TS Investments Ltd.

Vahanvati communication said the note that was given to AG showed that TS Investments Ltd will not be considered as a foreign investment as 51 per cent in the company is held by Tata Sons Ltd. The matter was referred to AG in March 2013 for his legal opinion.