Tighter norms for DTH players

Tightening the noose on direct-to-home broadcasting service providers, the government has specified stringent norms for maintaining financial accounts as well as security clearance of "key executives" of the companies.

The information and broadcasting ministry has issued an order under which a DTH applicant will have to get security clearance from the ministry, the home ministry and the department of space for satellite use.

The board of directors and the company's key executives like the chief executive officer will be scrutinised for the purpose, explains the order.

Currently, India has just two players "" Essel group-promoted Dish TV and Tata Sky "" but more ventures like Sun TV DTH and another by the Anil Dhirubhai Ambani Group are expected to enter the segment. The service has about 3.5 million subscribers which is projected to touch 15 million by 2012.

The new order will particularly force transparency in the financials of the DTH players.

As part of this, the ministry has defined "gross revenue" as the gross inflow of cash or any other receivable arising in the course of ordinary activities of the enterprise.

Returns from rent, interest, dividend, royalties, commissions and barter advertising contracts will also be a part of the "gross revenue" calculation.