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In a first, the government has made it mandatory for interested buyers of IDBI Bank to provide details for security clearance from the Ministry of Home Affairs in the first stage of the bidding process. Participants from Pakistan are required to apply for visa at High Commission of India in Islamabad ‘on line’. While submitting the proposals for security clearance to the Ministry of Home Affairs , the Unique ID (File no.) of the visa application in respect of participants from Pakistan who have applied for visa at HCI Islamabad may invariably be furnished along with the application. Clearance in respect of participants from Pakistan will be given by the Ministry of Home Affairs only ‘on line’.
“The Ministry of Home Affairs has given security clearance to Air India CEO-designate Campbell Wilson,” a senior government official told ANI. Under civil aviation rules, MHA clearance is mandatory for the appointment of key personnel at airlines, especially foreigners. The Department for Promotion of Industry & Internal Trade , in April 2020, issued a notice – PN-3 – regarding Foreign Direct Investment . With this notification, the Government made its approval for foreign investments mandatory from any country that shares a land border with India to discourage takeovers and other unfair activities influenced from such countries seeking to take advantage of the Pandemic, which was at its peak in 2020. Therefore, FDI proposals from China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan require Government approval.
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The third source added that too much reference to the MHA is also cause of worry, and the absence of a single-window clearance is also an issue, given that other ministries and departments involved in the process such as the Department of Space and the Department of Telecommunication, are still not aligned. According to the I&B ministry, there was a need to review and amend the existing guidelines, which were last issued in 2011. This need was felt because of challenges emerging from “fast evolving broadcasting technology”, “changes in the market scenarios”, and other operational developments in the broadcasting sector. There was also a need for creating a conducive environment for ease of business on a “sound regulatory framework”. Home ministry can withdraw security clearance to TV channels under new draft...
A third industry source gave the example of how Quintillion Business Media, which had plans to operate a business news channel in a joint venture with Bloomberg, had to drop its plans because it failed to procure a licence from the I&B ministry for three years, while fairly newer channels like Republic TV got a licence within months. “Once security clearance is granted to an entity by MHA, it will be valid for a period of 10 years… Provided that if at any time the MHA withdraws security clearance to a permission holder, the permission of the company/LLP shall be forthwith terminated, after giving an opportunity of being heard,” the clause states. The I&B ministry has released draft amendments to guidelines for private satellite TV channels, and sought suggestions from stakeholders within 15 days.
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While most companies continue to grapple with PN-3, the new 2022 amendments are certain to increase applications from neighbouring nationals. This will create an administrative burden, as both FDIs and Foreign Directors now seek permission for operating in India. Thus, PN-3 and the 2022 notification are complimentary to each other.
The guidelines also specify that channels which do not remain operational for 60 days should inform the I&B ministry, along with reasons about why it has remained non-operational, failing which, it would receive a warning. In case the channel continues to be non-operational for over 90 days, it would invite suspension or cancellation of permission. Also included in the amended guidelines are provisions for penal action, such as a warning and/or prohibition of broadcast up to 30 days, for use of dual logos for a channel or using a name or logo not approved by the ministry. “The guidelines do not specify a timeline required to get a licence, so business planning can’t take place,” the second source said. “But, they do not explicitly state if a channel with security clearance already in the broadcasting business will have to go for another round of security clearance from the MHA if it has to open a new channel,” the source quoted above said. The new guidelines also list a series of penal actions for violations from broadcasters, ranging from prohibiting a channel’s broadcast for 30 days if it uses dual logos, to stopping a channel from live broadcasts for up to six months in case it fails to register for the telecast of a live event.
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The long duration visa will remain on hold for the period for which the short duration visa is valid. On expiry of the validity of the short duration visa, the main visa will automatically become ‘UNHOLD’ and the same will be reflected in the Central Database. In such cases, visa shall be granted by the Indian Missions/ Posts only to those individuals whose cases have been specifically authorized for grant of visa by the Ministry of Home Affairs. Before PN-3, Government approval was not mandatory and the countries mentioned in the notification were only Bangladesh and Pakistan.
The new policy is aimed at bringing about a healthy balance between meeting the imperatives of national security and facilitating ease of doing business and promoting investment in the country. Broadcast of live events without prior registration will invite penal action, which could include suspension or cancellation of the channel’s permission. The guidelines, however, don’t clarify which event to be uplinked live would be construed as a news or current affairs event, leaving it up to the decision of the central government. Only such events, which from the standpoint of parameters require MHA’s security clearance, should be forwarded by the Ministries/Departments of the Central Government, State Government, PSUs etc. to the Ministry of Home Affairs at least 30 days prior to the commencement of the event. The current notification, in collaboration with PN-3, has tried to ensure that Indian businesses are secure from hostile takeovers from foreign powers, especially China. An additional layer of check involving the MHA will ensure authenticity of any foreign directors trying to be on the board of an Indian company.
Ministry of Home Affairs on 01st June 2022 issued a notification requiring to amending the Companies Rules, 2014. In pursuant to the amendment, it will become mandatory to obtain security clearance for individuals from countries sharing land borders with India before being appointed as directors on the boards of Indian companies. The guidelines reiterate that security clearances from the MHA will be mandatory for the company and its directors, in case of a change in directors or appointment of a new executive, change in shareholding pattern, or the transfer of a channel from one entity to the other.
The Ministry of Home Affairs has given security clearance to Air India CEO-designate Campbell Wilson, paving the way for him to take charge of the airline, a government official said. If the service is not completed within the due time, track the status online or reach out to the department. The Bar Council of India does not permit advertisement or solicitation by advocates in any form or manner. By accessing this website, , you acknowledge and confirm that you are seeking information relating to India Law Offices of your own accord and that there has been no form of solicitation, advertisement or inducement by India Law Offices or its members. The content of this website is for information purpose only and should not be interpreted as soliciting or advertisement. No material/information provided on this website should be construed as legal advice.
Thus, pursuant to Press Note 3 and the recurring theme of protecting Indian companies against opportunistic takeovers, the amendment is a strong move to ensure that countries that share land borders with India do not get a backdoor entry/ indirect control over the management of Indian companies by virtue of their nationals being on the Board. If the event includes participants from the countries for which prior ‘security clearance’ is required, the details should be sent to the Ministry of Home Affairs at least 30 days prior to the commencement of the event so as to enable adequate time to process the requisite security clearance. In the event of a foreign national availing short duration visas such as Conference Visa, Transit visa, e-Visa and Visa-on-Arrival while already having a long duration visa for India like multiple entry Tourist/ Business/ Employment/ Student/ Research Visas, the long duration visas will not get cancelled. In such cases, while granting the short duration visa like Conference Visa/ Transit Visa, the Indian Mission/ Post concerned may keep the long duration visa on hold for the period of the short duration visa. The status of holding of long duration visa of the foreigner shall be reflected in the Central Database of IVFRT. In case the foreigner is availing e-Visa or Visa-on-Arrival, the Immigration authorities may keep the long duration visa on hold for the period of the short duration visa, which shall be reflected in Central Database of IVFRT.
As per information provided by Department of Industrial Policy & Promotion and Reserve Bank of India, FDI through automatic route is under general permission and can be received without any approval, in compliance with the Foreign Exchange Management Regulation, 2017. No information is available about the number of proposals received for FDI under automatic route. Therefore, information related to percentage in terms of number of FDI proposals coming through the automatic route is not available. Sounds exactly like how “nationalists”/”republicans” tend to savage certain reforms by certain( ahem!) structured belief-systems ( “organised religions”). The guidelines also do not mention preconditions for use of foreign satellites. Industry sources said the new guidelines do address some challenges in terms of the ease of doing business in the broadcast sector.
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