Television Eighteen (TV 18) India and CNBC Asia will form a joint venture in India to undertake the broadcasting of its business news channel, to meet the requirements under the recent uplinking policy for news channels.
The regulations, announced on March 26 this year, stipulate that the foreign holding in a news channel company uplinking from India should not exceed 26 per cent.
TV 18 is the first to come out with a formal announcement on the restructuring of company to meet the new regulation.
As per the understanding between the two companies, CNBC Asia would either pick up an equity stake in TV 18 or one of its subsidiaries or the two companies would form a joint venture company for the purpose.
At present, TV 18 Mauritius and CNBC Asia Mauritius, have a Mauritius- based joint venture called CNBC India, which runs its business news channel.
In CNBC India, CNBC Asia Mauritius holds 51 per cent while the rest is with TV18 Mauritius.
As per the present arrangement TV 18 produces content for CNBC India.
CNBC India is owned by the joint venture in in Mauritius. As per the rules, this property has to be transferred to an Indian company in which a foreign company cannot hold more than a 26 per cent stake.