If the government approves the telecom regulatory authority of India’s (TRAI’s) recommendation on crossholding in television rating point (TRP) business, the Television audience measurement (TAM) Media Research may have to restructure its ownership pattern, reported the Financial Express.

TAM is the largest rating agency in India by market share. The present ownership structure of TAM involves a 50-50 joint venture of AC Nielsen and IMRB International. TRAI recommended that there should be no crossholding between the rating agencies and the broadcasters, advertisers and the advertising agencies.

TRAI has also introduced a clause that no single company or legal person, either directly, or indirectly, shall have significant equity amounting to more than 10% holding in more than one rating agency. This is to limit monopolies and encourage healthy competition among rating agencies. The recommendation is in line with the telecom regulatory framework, which prevents a service provider from holding more than 10% stake in a competing company within a region.

The regulator also recommended that the rating agencies, including foreign investments, joint ventures, associates, report their ownership pattern to the government on an annual basis and report any changes without delay. X