The Foreign Investment Promotion Board is believed to have cleared Zee Telefilms' plan of raising $100 million as foreign currency convertible bonds subject to the condition that the company brings down total foreign shareholding to 26 per cent by July 31 this year.

However, ZTL's proposal of transferring all rights of Zee News channels and news and current affairs slots across all alpha channels to 100 per cent Indian owned group company Zee Sports is still being examined by the ministry of information and broadcasting, sources said in New Delhi.

FIPB nod for ZTL's FCCB issue came after the I&B ministry conveyed its no-objection to the proposal, having earlier rejected the same plan. Earlier, the ministry had said raising money through FCCB would lead to increased foreign stake in ZTL and this would violate the uplinking norms for news channels.

Now, FIPB has allowed ZTL time till July 31 this year to conform to the uplinking norms, which stipulate 26 per cent cap on foreign shareholding in news channels wanting to uplink from India.

ZTL is planning to raise funds for importing capital goods, new projects, modernisation and expansion of existing ventures and wholly-owned subsidiaries, mergers and acquisitions abroad.

The company proposes to offer in the international market equity shares through FCCBs to institutional or individual non-resident investors up to $100 million dollars or about Rs 450 crore.