New Delhi: Refusing to tinker with the 26 per cent sectoral cap, the Government today (Sep 28, 2004) said it is considering allowing Foreign Institutional Investor (FII) investment in Indian news channels.

Currently, only Foreign Direct Investment (FDI) is allowed and there is a ceiling of 26 per cent on that.

"We are looking at allowing FII investment in the sector, though there is no plan to review the sectoral cap," a senior official of the Information and Broadcasting Ministry said in New Delhi.

The official said, this was being considered as part of rationalisation for allowing greater operational flexibility.

However, he refused to elaborate further saying "the proposal is being studied by the Ministry."