GECs
CAS: IBF to push for level playing field
NEW DELHI: The Indian Broadcasting Foundation (IBF) has decided to exhort the government to mandate all other addressable systems in the country like DTH and IPTV, for example, as was being done with CAS or conditional access system.
This suggestion was one of the many that were discussed today by the board of IBF, an apex body of broadcasting companies operating in India, during a debate to help formulate a stand on the issue of CAS, which can be taken to the government by 7 April.
Another issue that the IBF would note down in a communication to the information and broadcasting ministry, which is holding meetings with industry stakeholders to finalise a rollout plan for CAS, is the pricing of such addressable services.
Though the exact words are still to be formalized, IBF sources told Indiantelevision.com it was suggested that the government should be petitioned to follow a recommendation of the sector regulator on the pricing mechanism of addressable systems like CAS, DTH and IPTV with an aim to provide a level playing field to broadcasters vis-à-vis the cable fraternity.
In a set of recommendations on addressable systems made in 2004, Telecom Regulatory Authority of India (Trai) had suggested that since addressable services depend on offering a choice to consumers, unlike non-addressable system like present-day cable TV services, pricing should be allowed to be formulated by market forces and not mandated.
Another issue that is likely to find its way in the letter for the government involves the free-to-air bouquet of channels and its pricing.
The IBF board feels that since the scenario has undergone a change from the time CAS was mooted in 2003 when the free-to-air (FTA )bouquet was to comprise 30 channels and priced at Rs. 72 (exclusive of taxes), more channels should now be added to the FTA package for consumers in a CAS-enabled regime.
The argument in favour of increasing the number of channels to at least 50 is backed by the fact that the subscription-free DTH service of Doordarshan will also carry more than 50 FTA channels from May. This was announced by DD today at a press conference.
The IBF board is also likely to express its reservation against providing a la carte pricing of channels as it might be against consumer interest.
Though such a line of thought had been forwarded by the broadcasting industry in the US to the American regulator, the Federal Communications Commission recently put out a statement saying that the earlier report on a la carte pricing was lopsided and individual pricing of TV channels actually works to the benefit of consumers. This too is being contested by broadcasters in the US.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
