Top Story

e4m_logo.png

Home >> Media - Radio >> Article

FM radio to be Indian, by Indian

18-August-2005
Font Size   16
Share
FM radio to be Indian, by Indian

Single largest shareholder should own at least 50% of the paid-up equity.

The single largest shareholder in a private FM radio company in India will have to own at least 50 per cent of the paid-up equity. The shareholder will also have to be an Indian entity for bringing in foreign equity.

This has been incorporated in the bid document, yet to be released, to make sure Indian entities control FM radio companies. But this condition will not apply for banks and other lending institutions holding majority stake in a company.

The government has also decided to allow only resident Indians as directors on the boards of FM radio companies. Observers say this is likely to hamper foreign investment in the sector. FM radio companies point out that when a foreign company invests in an entity, it will prefer to have its own representative on the board.

Foreign shareholders will also have no say in the management of FM radio companies in India. This is because the government wants only the majority shareholder to exercise management control over an FM radio company.

Besides, FM radio companies will not be permitted to change the ownership of the major shareholder without government permission.

In addition, during the licence period, if the government comes out with a policy on cross-media ownership, the licence holder will have to conform to the revised guidelines within a period of six months.

Private FM radio companies that want to set up stations in all cities will have to have a minimum net worth of Rs 10 crore.

If a company wants to start a radio station in a metro, the minimum networth required per channel will be Rs 3 crore. This condition is aimed at preventing non-serious players from entering the sector.

For category B cities, which are mid-sized cities, the minimum networth per radio station will be Rs 2 crore and for small cities, it has been capped at Rs 1 crore. In the case of smaller cities, the minimum networth will be Rs 50 lakh.

Companies will be allowed to run only one channel in each city but they will not be permitted to air news and current affairs programmes on FM channels.

NO MELODY THIS

The shareholder will have to be an Indian entity for bringing in foreign equity

Only resident Indians to be allowed as directors on the boards of FM radio companies

Observers say foreign investment in the sector is likely to be hampered

Tags

Our typical marketing budget is usually 10 per cent of the topline spend

There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=http://www.exchange4media.com/company/news/amaz...

The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.

<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...

Under the watchful eye of Walt Disney, Bindass undergoes brand repackaging with a fresh new show ‘Dil Buffering’ simulcast across its linear and social media platforms on September 29 and will launch...

Apart from the mandate for the first project which is the Ashiana Town in Bhiwadi, Tomorrow and InterTwined will deliver brand solutions across film, print, radio, outdoor and activation besides provi...

Despite advertising picking up after a slow Q1, regional FM players still feel that the lingering effect of GST, RERA, demonetisation will still make its impact felt during the upcoming festive quarte...