India' s Ministry of Information & Broadcasting has released guidelines specifying procedures that TV Rating agencies in the country have to follow, which will come into force on the 15th of February 2014. No rating agencies are allowed to publish ratings until they're in compliance with these guidelines, and once a company is registered, they have to generate and publish ratings within 6 months, failing which their registration will be canceled. Download the guidelines here. The lowdown: The Basics 1. Conflict of Interest Issues: The company's Memorandum of Association will specify "specified rating services or market research", as one of its main objectives, and not include any activity like consultancy or any such advisory role, which would lead to a potential conflict of interest. The board of directors on the company shall not be in the business of broadcasting, advertising or advertising agency. A promoter company/member of the board of directors of the rating agency cannot have stakes in any broadcaster/ advertiser/advertising agency either directly or through its associates or inter-connected undertakings. The rating agency shall not include any officer, employee or any other member, of broadcasters, advertisers and advertising agencies, in the audience measurement panel. 2. Cross Holding: No single company/ legal entity, either directly or through its associates or inter-connected undertakings, shall have 10% or more equity holding in rating agencies and broadcasters / advertisers / advertising agencies, or in more than one rating agency operating in the same area. This is applicable to both individual promoters of companies,…
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