Telecom Regulatory Authority of India (Trai) today recommended an increase in foreign direct investment (FDI) limit to 26 per cent from the existing limit of 20 per cent for FM channels broadcasting news. For non-news category, Trai has recommended an FDI increase to 49 per cent.

The regulator has also said that FM channels should be allowed to offer news. However, FM broadcasters should only be permitted to take content from All India Radio, Doordarshan, authorised television news channels, United News of India, Press Trust of India, and any other authorised news agency, said Trai in its recommendations on the 3rd Phase of Private FM Radio Broadcasting submitted to the Information and Broadcasting Ministry.

On FDI issue, the regulator made it clear that no change in holding pattern of the shares shall be permitted till the start of the FM Radio broadcasting under any circumstances. However, the dilution of the share holding by majority shareholders would be permitted once the services are launched. This is subject to the condition that their share holding does not fall below 51 per cent, with the prior permission of the Information and Broadcasting Ministry. Any change in ownership or further dilution shall be permitted after a period of three years from the date of launch of services.

Trai has also recommended that an existing operator can be permitted to bid for another channel in the same district if his bid is the highest. However, this should be subject to the condition that the maximum number of channels to a permission holder in the district will not be more than 50 per cent of total channels in the district.

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