The Union Cabinet of India on Thursday approved policy on expansion of FM Radio Broadcasting . Ministry of Information & Broadcasting can now grant permission to the FM broadcasting companies for creation of subsidiaries, merger , demerger ,amalgamations of companies by way of transfer of shares in relaxation of FM Phase II Policy.
“No permission holder, whether with or without foreign investment, shall be permitted to change the ownership pattern of the company through transfer of shares of the majority shareholders or promoters to any new shareholders without the written permission of the Ministry of Information & Broadcasting, which shall not be granted for a period of five years from the date of operationalization of the channel, subject to the condition that the new shareholders conform to all the prescribed eligibility criteria. However, requests for transfer of shares for the purpose of creation of a subsidiary company, amalgamation of companies of the same group, de-merger of company etc. would be allowed within the period of five years,” a government spokesperson said .
The private FM broadcasters are at present facing various difficulties. It would give them financial flexibility and hence the growth of the FM industry could be protected.