Centre proposes changes to TV rating guidelines, removes conflict clauses

Revised framework for TV rating guidelines deletes cross-holding, updates Companies Act rules

This story has been updated.  The Ministry of Information and Broadcasting (MIB) has proposed sweeping changes to the regulatory framework governing television rating agencies in India to broaden participation and modernise eligibility criteria.

 

In an order released on Thursday, the ministry said it sought to revise key clauses in the 2014 Policy Guidelines for Television Rating Agencies. The Centre has also invited public and stakeholder feedback on the changes within 30 days of the notice's publication. 

Key deletions

Among the most consequential proposals is the deletion of Clauses 1.5 and 1.7 from the existing guidelines, removing restrictions that previously barred board members of rating agencies from being involved in broadcasting, advertising, or related businesses, and eliminating the cross-holdings norms. 

Under the current guidelines, drafted in 2014, concerned entities and individuals are barred from holding more than 10 per cent stake in a rating agency. "Having a substantial equity holding in companies shall constitute a cross-holding," the 2014 guidelines state. The proposed amendment, however, is expected to lower entry barriers and enable new entities, including those with digital-first operations, to participate in the television ratings ecosystem.

   

Conflict of interest guidelines

Changes have also been proposed to Clause 1.4 of the existing policy. Earlier, companies were only required to mention in their memorandum of association that they would avoid activities like consultancy or advisory services that might lead to a conflict of interest. Now, this prohibition is explicitly mentioned.

 

"The company shall not undertake any activity like consultancy or any such advisory role, which would lead to a potential conflict of interest with its main objective of rating," the updated clause reads.

  

Other changes: Eligibility, registration, exemptions

The government has also recommended the removal of a key proviso under Clause 1, which had earlier exempted self-regulatory industry-led bodies like the Broadcast Audience Research Council (BARC) from meeting certain eligibility criteria.

 

Clauses that earlier required companies to be registered under the Companies Act, 1956, have been updated, now mandating registration under the updated Companies Act, 2013.

 

According to the notice, the amendments will take effect immediately and apply retrospectively to currently registered companies.