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TRAI proposes restriction on Political parties, Government Entities and Corporates in Media

by MN4U Bureau
August 13, 2014
in Buzz
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NEW DELHI: In an attempt to ensure plurality of news and views, broadcast regulator TRAI today suggested restriction on political bodies and corporates entering the television and newspaper business.

It also recommended a single independent media regulatory authority comprising predominantly of eminent non-media persons for TV and print media to check and impose penalties for “paid news”, “private treaties” and issues related to “editorial independence”.

“The entities (political bodies, religious bodies, urban, local, panchayati raj, and other publicly funded bodies, and Central and State Government ministries, departments, companies, undertakings, joint ventures, and government-funded entities and affiliates) to be barred from entry into broadcasting and TV channel distribution sectors,” TRAI said.

The Telecom Regulatory Authority of India has said that an exit route option should be provided in case permission to any such organisations have already been granted.

Commenting on corporates entering media, it said: “On grounds of the inherent conflict of interest, the Authority recommends that ownership restrictions on corporates entering the media should be seriously considered by the Government and the regulator 

With respect to the “media regulator”, TRAI said: “Government should not regulate the media; There should be a single regulatory authority for TV and print mediums; the regulatory body should consist of eminent persons from different walks of life, including the media. It should be manned predominantly by eminent non-media persons.”

Besides, it said, strengthen arm’s length relationship between Prasar Bharati and government and take measures to ensure functional independence and autonomy.

In its recommendations on issues relating to media ownership, TRAI said the news and current affairs genre is of utmost importance and direct relevance to the plurality and diversity of viewpoints and, hence, they should be considered as the relevant genre in the product market for formulating cross-media ownership rules. 

For restriction on corporates entering media, it said: “This may entail restricting the amount of equity holding/ loans by a corporate in a media company, viz., to comply with provisions relating to control.” 

TRAI said that pending enactment of any new legislation on broadcasting, disqualifications for entities, including political bodies and religious bodies which it has recommended to be barred from entering media, should be implemented through executive decision. 

The existing entities in the media sector which are in breach of the rules, should be given a maximum period of one year to comply with the rules, it added. 

On “paid news”, TRAI said that both media organisation and persons like an MP or MLA paying for favourable news should be held liable and not only the politician. 

It also recommended that in case “advertorials”, a clear disclaimer should be mandated, to be printed in bold letters, stating that the succeeding content has been paid for. 

The regulator has suggested that media organisation should submit reports to licence issuing authority and the proposed regulator which should disclose information related to shareholding pattern, foreign investments, board of directors, loans etc in public domain. 

TRAI said media organisation must also disclose to licensor and regulator their top ten advertisers, subscription and advertisement revenue and advertising rates. 

There would still exist the need for a comprehensive evaluation of the legislative and legal framework in order to establish a robust institutional mechanism for the long term, it said. 

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