The Union Cabinet relaxed the norms for the FM radio transmission in the country. The government allowed the private radio operators to set up subsidiaries. The companies are also allowed to transfer the shares through mergers and demergers.

I&B Minister Priyaranjan Dasmunsi told reporters after the Cabinet meeting that the government has revised the FM rules and the new rules would help companies to expand radio market.

It is recalled that the private companies are also demanding additional release of frequencies. They wanted to operate multiple channels through this additional spectrum in the same city. The industry body FICCI recommended the government to relax the norms for FM ownership. The body also recommended automatic renewal of licenses at the end of the initial term of license.

The present FM phase-II policy demands the approval of information and broadcasting ministry for change in ownership through transfer of shares of major shareholders to any new stakeholder. But according to new rules companies can allowed to transfer the ownership subjected to some conditions.