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Can Zee, Sterling JV get past government regulations?

07-November-2000
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Can Zee, Sterling JV get past government regulations?

Zee Telefilm Ltd. And Sterling Infotech announcement of a joint venture for a KU-band direct-to-home (DTH) raises some vital issues, including whether such joint venture can get past government regulations. The reason being: · Prima facie they cannot come together for a DTH company as the sectoral cap is 20 per cent as per announcement made by I&B ministry. · Since Sterling Infotech has directly/or indirectly have over 25 per cent equity stake in both Broadcast Worldwide and ETC channel, can the company be called a promoter of these broadcasting companies along with other main promoters. If the answer is yes then the government need to clarify further on investors who have made substantial investment in their individual capacity or through their companies in more than one broadcasting company and hold equity stakes.

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