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Media Firms Must Disclose Pvt Treaty Pacts: SEBI

28 August, 2010

The Indian markets regulator has made it mandatory for media firms to disclose stakes held by them in various companies under “private treaties”, according to a filing on Friday.

The Securities and Exchange Board of India (SEBI) said such private treaty arrangements typically give a media firm stake in a company in return for media coverage through advertisements, news reports and advertorials in the print or electronic media.

Such agreements may give rise to conflict of interest and may result in dilution of the independence of press, SEBI said, adding biased coverage can potentially mislead investors in the securities market.

The stake held via private treaties by a media firm should be revealed in the news coverage, SEBI said, adding board positions held by the media firm as well as any other information involving a potential conflict of interest must be disclosed.

 


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1 Comment
Karthik . 6 years ago

C.B.Bhave rocks!

Post a tiff with a non-transparent-to-the-extent-of-bordering-on-fraud Insurance industry, SEBI is now after the ridiculously non-transparent media industry. A very welcome step. It is really ironical that media companies which are supposed to bring transparency into the system, are themselves engaged in such dubious deals which compromise on editorial integrity. Shouldn’t disclosure of potential-conflict-of-interest be the norm of the industry, rather than being enforced by an outside regulator?

Kudos to Bhave and SEBI for taking such forward-looking steps in order to bring transparency into the system. Hope the other regulators and politicians learn something from this. (is TRAI listening?)

Sahad: As a journalist, would love to hear your views on the same

Media Firms Must Disclose Pvt Treaty Pacts: SEBI

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