Star row: FIPB raises more queries

Star's application seeking uplinking from India appears to have hit yet another roadblock with the Foreign Investment Promotion Board raising certain queries in its last meeting.

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Star, which has offloaded 74 per cent stake in the uplinking entity Media Content and Communication Services to an Indian newspaper group, had applied afresh last month and the proposal is believed to have been cleared by the ministries of information and broadcasting and finance.

However, at its latest meeting, FIPB is believed to have raised some fresh queries, which the company will have to answer before the proposal is finally cleared.

The fresh application by MCCS followed the government's decision to tighten uplinking guidelines, in which it stipulated that an Indian entity should hold at least 51 per cent equity.

The government had expressed apprehensions about proxy control in Star's earlier application where it had offloaded stake to a number of high net-worth individuals.