• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mr Priyaranjan Dasmunsi

Our Bureau

New Delhi, Sept.11 FM radio companies will now be able to restructure their business before the five-year lock-in period, with permission from the Ministry of Information and Broadcasting.

The Union Cabinet today approved guidelines to allow mergers and creation of subsidiaries of FM radio companies, on certain conditions. The move is expected to allow companies to bring in additional equity.

Earlier norms had a lock-in period to ensure that the licensee was the one running the business.

The Government will now allow mergers, demergers, subsidiaries and amalgamations in FM Phase II Policy.

As long as the majority shareholders or promoters continue to remain the majority stakeholders and hold 51 per cent of total shares, and as long as the new corporate entity maintains the FDI component within the prescribed limit, the Ministry of Information and Broadcasting will allow mergers, and subsidiaries of radio FM channels before a period of five years. The announcement was made by Mr Priyaranjan Dasmunsi, Minister of Information and Broadcasting, at a press briefing following the Cabinet meeting.

The new entities would have to have a minimum prescribed net worth and sign a fresh agreement on identical terms and conditions, except for transfer of shares, with the Government for the remaining period of its licence.

“This comes as a very favourable move for the industry especially for broadcasters who had applied for the de-merger. We’re hoping that this announcement will also pave way for further deregulation for the industry by way of increased FDI, multiple licencing and allowing news and current affairs on FM radio.

“We eagerly look forward to Phase III and hope that the Government works on expediting the process,” said Ms Apurva Purohit, President, Association of Radio Operators of India, and CEO, Radio City.

More Stories on : Radio/TV | Restructuring | Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line