New Delhi, India – The Indian government plans to regulate rating agencies that measure television audience of a programme or channel by making it mandatory for all agencies to be registered with the information and broadcasting ministry, reported the The Times of India. 

This move would effectively streamline the rating agencies, with the guidelines laying down a rule that no such body can operate without complying with the provisions of the ministry. 

Of the audience, 50, 000 sample homes will be picked through an elaborate exercise for monitoring within the next few years. The initial 20, 000 homes would be picked through an establishment survey, where twenty-five percent of them would be rotated while adding 10,000 more homes annually until the target sample size is attained. All information on the homes is to be kept confidential.

According to the guidelines, no single media company, directly or through associates, can simultaneously have a “substantial equity holding” in rating agencies and broadcasting or advertising agencies. The bar has been kept at 10% of paid up equity.

“Ratings” have to be technology-neutral, encompassing viewing platforms like DTH, terrestrial and cable TV. The rating agencies would have to set up mechanisms to get their methodologies audited internally and independently.

It was reported by the India-based news agency, that tough measures will be put in place to penalise the agencies that violate the guidelines. Non-compliance of guidelines on cross-holding, methodology, secrecy, privacy, audit and reporting requirements would lead to forfeiture of bank guarantees worth Rs 1 crore that would be furnished during registration. A repeat violation would lead to cancellation of registration of the rating agency. In case of violation of other provisions, the first instance would invite a forfeiture of bank guarantee of Rs 25 lakh and forfeiture of Rs 75 lakh in the second instance. The third violation would lead to cancellation of the registration. 

The guidelines are still in the process of approval by the Indian government Cabinet this month and will come into effect by the end of June 2014.