New Delhi, Apr 26: In a move that, if implemented, would further liberalise the sector, broadcast regulator TRAI on Saturday recommended raising the foreign investment limit in news channels and FM radio to 49 percent.

"The authority recommends that the foreign investment limit for news and current affairs channels in the uplinking guidelines may be increased from 26 percent to 49 percent," the regulator said in its recommendations on foreign investment limit for the broadcasting sector.

TRAI has, however, maintained status quo in case of uplinking of non-news TV channels and downlinking of TV channels at 100 percent foreign investment limit.

The regulator said any change in the foreign investment limit for TV broadcasters would necessitate revisiting the recommendation of the authority on such cap for fm radio for the sake of consistency.

The current limit of foreign investment is 20 percent in FM radio services.

The comments of stakeholders indicate that while most of the news broadcasters want the existing cap of 26 percent on foreign equity holding, including FDI, FII and NRI investments, for news and current affairs TV channels be raised to 49 percent, a few news broadcasters want the existing limit to be retained, TRAI said.

As per the regulator, those which wanted the existing limit of 26 percent to continue, said this is a sensitive sector involving national security and image, so status quo should be maintained and should be capped at 26 percent.

The better way to ensure that subversive content is not broadcast through TV channels is by having proper content monitoring and regulation through content code, instead of using foreign investment limits as the tool for this purpose, TRAI said.

Some operators felt that uplink policies of government already impose terms by which an increase in the foreign investment cap to 49 percent will not result in shifting of management or editorial control to foreign entities. On the other hand, the upward revision will make more sources of funding available in the sector.

In the carriage services, TRAI has proposed hike in the limits of foreign investment for cable networks from 49 percent to 74 percent.

The regulator has recommended that the total foreign investment, including FDI for hits (headend in the sky), should be 74 percent. There is no policy as on date over this form of carriage services. Hits is an alternate distribution platform.

In teleport (hub), mobile television and direct to home companies also, the total foreign investment should be 74 percent, TRAI suggested.

The current foreign investment limit in teleport and DTH is 49 percent. But in case of DTH, the FDI component is not allowed to cross 20 percent.

No policy exists for foreign investment limit in mobile TV as on date.

Majority of stakeholders had suggested 74 percent foreign investment limit for television distribution -- DTH, hits, cable network and teleport. Some suggestions for 49 percent foreign investment limit in these segments were received, TRAI said.