The Information & Broadcasting Ministry is looking to bring amendments in the Policy Guidelines for Television Rating Agencies in India, which were released in 2014. The agencies are involved in audience measurement for TV channels. The Ministry has sought stakeholders’ views on these proposed amendments.

The amendments are aimed at bringing in relaxations for rating agencies in terms of cross-holding restrictions besides updation of registration norms.

The proposed amendments state that clauses 1.5 and 1.7 of the Policy Guidelines for Rating Agencies in India “shall be deleted”. Clause 1.5 in the guidelines had prohibited Board of Directors of the audience measurement company “to be in the business of broadcasting, advertising and advertising agencies”. Meanwhile, clause 1.7 defines restrictions in terms of cross-holdings in terms of substantial equity in rating agencies as well as promoter level restrictions. For instance, the guidelines released in 2014 state that ”a promoter company/member of the board of directors of the rating agency cannot have stakes in any broadcaster/ advertiser/advertising agency either directly or through its associates or inter-connected undertakings”.

Restrictions
The Ministry is now proposing to do away with such restrictions, which will enable stakeholders from the industry to serve on the boards of audience measurement agencies, among others.

Another proposed amendment stated: “The company [TRP rating agency] 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.” Earlier, this clause was defined as ” the company’s MoA shall not include any activity like consultancy or any such advisory role, which would lead to a potential conflict of interest with its main objective of rating”. Another amendment is aimed at updating registration norms by changing the reference to the Companies Act 2013 from the Companies Act 1956. “The applicant seeking registration for providing television rating services shall be a company registered in India under the Companies Act, 2013,” it stated.

Once finalised, the proposed amendments will become effective immediately, and will be applicable to existing rating agencies, the Ministry stated. The Hindu business line