Star India has indicated to the government that it is open to restructuring the equity of Media Content and Communication Services, the company that has applied for a licence to uplink the Star News channel, so that an Indian shareholder becomes a dominant partner with 51 per cent stake.
According to a source close to the development, this will be done to prevent the government rejecting MCCS' application for uplinking.
"It has been communicated to the government that MCCS is open to restructuring the holding of the existing Indian equity partners in favour of an Indian company, which can become the dominant equity partner. The company does not want the government to reject its application on this ground," the source said.
"MCCS is in talks with a number of Indian companies if there is further need to change the equity pattern," he added.
Star India set up MCCS in June to meet regulations that stipulate a 74 per cent Indian shareholding in a news channel uplinking from India.
The present Indian shareholders of MCCS are advertising professional Suhel Seth, with a 30 per cent stake, Merrill Lynch Vice-Chairman Hemendra Kothari (25 per cent), Hindustan Times Editor Vir Sanghvi (5 per cent), lawyer Raian Karanjiwala (4 per cent), television personality Maya Alagh (5 per cent) and actor Jeetendra Kapoor (5 per cent).
Star has also indicated to the government that it should give the company enough time to comply with rules if there are any changes.