FM panel for 26% foreign investment

 The recommendation, if implemented, will result in far-reaching changes in the sector. As per the present norms, foreign investment in a FM radio company is capped at 20 per cent.

 Besides, the panel has also suggested allowing the broadcasting of news and current affairs programme on private FM radio channels.

 To ensure that the control of the company remains with the Indian promoters, the panel has also suggested that the largest Indian shareholder must hold at least 51 per cent equity, excluding the equity held by public sector banks and financial institutions, in an FM radio broadcaster.

 Besides, the panel is also of the view that 75 per cent of the executive and editorial staff should be resident Indians, appointed by the license holder without any reference from any other entity.

 Taking a divergent view from that held by the government in most of its suggestions, the committee has also recommended the allocation of multiple licenses in the same city, the permission for networking by the same broadcaster on several stations and the removal of the co-location condition for making this sector viable.

 The radio broadcast policy panel, headed by Federation of Indian Chambers of Commerce and Industry (FICCI) secretary general Amit Mitra, has also recommended a revenue sharing arrangement along with an entry fee for private operators in FM broadcasting instead of the fixed license fee regime and a pre-qualification round to adjudge the bidders