MAM
Trai not to implement ad regulations till further orders from Tdsat
NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (Tdsat) has directed the Telecom Regulatory Authority of India (Trai) to hold on to its commitment of not implementing regulation of advertisement on television channels till its further orders.
The commitment that the Standards of Quality of Service (Duration of Advertisements in Television Channels) Regulations, 2012 dated 14 May 2012 will not be implemented till 30 August was given by Trai during a Tdsat hearing on July 17.
Broadcasters had moved Tdsat challenging the authority of Trai to implement the provision in the Cable Act that restricts the total advertisements in an hour to 12 minutes.
Trai will not take steps to implement the regulations on advertisement limit till the next hearing. Tdsat chairman S B Sinha and member P K Rastogi have listed for further hearing on 3 December the petitions filed by broadcasters and organisations against ad regulations.
Tdsat gave its directive after Trai Counsel Saket Singh gave an assurance that the regulator was prepared to discuss the issue with broadcasters and other stakeholders. Singh also pointed out that Trai had, in fact asked all stakeholders to respond by 11 September to amendments proposed in the draft regulation “Standards of Quality of Service (Duration of Advertisements in Television Channels) (Amendment) Regulations, 2012”. The draft amendment was released on 27 August.
The petitioners have questioned the powers of Trai contending that the regulator has no power to limit the ad times. According to the broadcasters, such power vests with the central government and that only it can issue such directions under The Cable Television Networks (Regulation) Act, 1995.
The Tribunal was hearing different petitions by the Indian Broadcasting Foundation, the News Broadcasters Association,. ESPN Software India Pvt. Ltd., Multi Screen India Pvt. Ltd., Neo Sports Broadcast Pvt. Ltd., and Discovery Communication India which had been clubbed together.
Some of the petitions had been filed when the first Regulations were issued on 14 May while those affecting sports channels were filed following the amended draft issued on 27 August.
Counsel A J Bhambani who represented some of the petitioners in the appeal challenging the Trai Regulations said the regulator should not have issued any amended regulations in view of its assurance to the tribunal in July that it would not implement its regulation till 30 August.
Singh said Trai had only issued draft Regulations as part of the consultation process and had no intention of enforcing it till all the stakeholders had been heard.
Trai had first issued a notification on 14 May limiting the duration of advertisements in TV channels to 12 minutes per hour. Any shortfall of advertisement duration in any hour cannot be carried over, the telecom regulator had said. Trai in its regulation had also said that the minimum time gap between any two consecutive advertisement breaks should not be less than 15 minutes and not less than 30 minutes for movies.
Trai in its draft amendment of 27 August has proposed to withdraw the requirement of a 15-minute gap between ad breaks, while sticking to the overall ad time of 12 minutes per hour. For sports broadcasters, Trai has proposed to remove the clause that permitted ads only during breaks in case of live broadcast of a sporting event.
Also read:
Broadcasters get breathing space as Tdsat stays Trai‘s ad cap rule Trai willing to discuss with broadcasters on TV ad time issue
Starting a business is one of the most financially demanding transitions a person can make. In the early months, expenses are immediate and often unpredictable, while revenue streams may take time to stabilise. For first-time entrepreneurs, securing small business loans can feel like a paradox: lenders expect a clean financial track-record before approving a loan, but the business cannot establish that track record without funding. Understanding the start-up lending environment in India and knowing the realistic funding options make this process far less daunting, allowing entrepreneurs to plan strategically.
Why Traditional Business Loans Are Harder for Start-ups
Most financial institutions require a minimum business vintage of 2 to 3 years before approving a term loan. This is because the first two years of operations carry the highest risk of failure. For start-ups less than 12 months old, traditional loan options are limited, and lenders often ask for substantial collateral to mitigate risk.
The vintage requirement is not arbitrary. Businesses that have survived their first two operating cycles demonstrate market viability, which significantly lowers the lender’s risk. Until this milestone is reached, entrepreneurs often rely on bootstrapping, personal savings, or alternative financing to build a stable business foundation. Understanding this reality helps first-time entrepreneurs set practical expectations when seeking funding.
Government-Linked Schemes for Startups
India offers several government-backed schemes to support first-time entrepreneurs. One such scheme is the Pradhan Mantri Mudra Yojana (PMMY), which provides collateral-free loans for micro and small enterprises in three categories:
● Shishu: up to Rs. 50,000
● Kishore: Rs. 50,000 to Rs. 5 lakh
● Tarun: Rs. 5 lakh to Rs. 10 lakh
These loans are available through eligible lending institutions, making them suitable for early-stage businesses. For first-time entrepreneurs, a Mudra loan not only provides initial working capital but also helps establish a credit history. Repaying a Mudra loan on time strengthens the entrepreneur’s profile and increases the chances of securing larger loans in the future.
Using Personal Loans to Fund Early-Stage Needs
When business loan eligibility is not yet established, a personal loan can serve as bridge funding. These loans are assessed on the individual’s credit profile and income rather than the business’s financial history, making them accessible to salaried individuals or those with a strong personal credit record.
Personal loans have limitations: the loan amount is capped based on personal income, and the interest rate is typically higher than secured business loans. Nevertheless, taking out a personal loan during the first 12 to 18 months can provide crucial support as the start-up builds its financial profile. It is especially useful for covering immediate expenses such as inventory, marketing, or office setup costs.
Alternative Financing Options for Startups
For start-ups that are not yet eligible for traditional business loans, other financing options are available through financial institutions. Many lenders offer startup-focused or small-business loans designed for early-stage businesses. These loans evaluate the entrepreneur’s personal credit profile, business plan, and projected revenue rather than relying solely on business vintage. Financial institutions such as Tata Capital provide these loans with minimal documentation and fast disbursal, enabling entrepreneurs to manage operational expenses, purchase equipment, or fund early growth initiatives without pledging collateral.
Some lenders also offer flexible loan amounts, quicker approvals, and streamlined processes, making them well-suited for first-time entrepreneurs. Exploring these options early allows start-ups to access working capital while gradually building a credit history that will support larger loans in the future.
Building the Right Financial Profile Before Applying
For entrepreneurs planning to apply for a business loan in 12 to 18 months, the preparation period is critical. Key steps include:
● Filing Income Tax Returns (ITRs) consistently and accurately from the first year
● Maintaining a clean current account with regular deposits and no overdraft patterns
● Keeping the promoter’s CIBIL score above 750
Lenders assess start-ups by examining these signals. Entrepreneurs who maintain financial discipline from the start will have stronger loan applications after two years. Additionally, tracking cash flow and avoiding irregular withdrawals can further enhance the business’s credibility.
Collateral-Based Options for Larger Requirements
Startups requiring larger amounts beyond government schemes can consider loans against property. These loans allow entrepreneurs to access larger amounts of funding at lower interest rates, as the property secures the lender’s risk.
This option carries significant risk: using personal or family assets as collateral can result in a loss if the business does not perform as expected. Such loans should be considered only when the business plan is validated, the entrepreneur has clear cash flow projections, and the repayment strategy is realistic. Careful assessment of risk versus reward is essential before pledging assets.
Practical Steps to Strengthen Your Loan Application
To maximise the chances of approval, entrepreneurs should:
● Maintain accurate financial statements, bank records, and GST returns.
● Avoid over-borrowing; apply for realistic amounts that match business needs.
● Keep personal and business credit profiles in good standing.
● Explore lenders that offer startup-friendly products.
● Be transparent and complete in all documentation.
Taking these steps early ensures a smoother and faster loan process when the business is ready for formal financing. A well-prepared application reduces processing delays and demonstrates professionalism to the lender.
Conclusion
First-time entrepreneurs often face a funding gap in the early stages, but it is usually smaller than it appears. Maintaining clean banking records, filing ITRs consistently, and exploring personal loans, government schemes, and alternative financing options help build a strong financial profile. Entrepreneurs who plan systematically from day one are better positioned to access formal credit sooner, giving their start-ups financial stability through small business loans.
The ideal time to start building a credit-worthy business profile is the very first month of operations, not when applying for a loan. By understanding available funding options and acting proactively, first-time entrepreneurs can confidently apply for a business loan and set their businesses on a path to long-term growth.
