The Cabinet on Thursday gave its nod to relax the FM Phase II Policy and granted the approval to authorise ministry of information and broadcasting to allow FM radio players for the creation of subsidiaries, merger or demerger of companies by transfer of shares. However, there would be no change in the foreign investment limit of 20 % in the FM radio sector, said I&B minister Priyaranjan Dasmunsi.
The Cabinet allowed companies operating for less than five years to transfer shares into subsidiaries provided the foreign investment cap and the majority shareholders remained the same. ?It would give the financial flexibility and the growth of the FM industry would be protected? said Dasmunshi.