Broadcasting stocks in focus as Cabinet nods revision in DTH services guidelines; DishTV nosedives 5%

Majority of DTH stocks were trading on a bullish note, however, that was not the case with DishTV India stock.

Dec 24, 2020 11:12 IST India Infoline News Service

Stock Trader
Broadcasting and cable stocks were in focus on Thursday after the Union Cabinet chaired by Prime Minister Narendra Modi approved the proposal for revision of the guidelines for obtaining a license for providing Direct-To-Home (DTH) broadcasting service in India. Majority of DTH stocks were trading on a bullish note, however, that was not the case with DishTV India stock.

At around 11.02 am, DishTV India was trading at Rs14.85 per piece down by 4.62% on Sensex. The stock has plunged to an intraday low of Rs14.43 per piece.

On the other hand, Siti Networks surged by 4.31% and was trading at Rs1.21 per piece. Also, Den Networks soared by 1.43% trading at Rs63.80 per piece. Meanwhile, Sun TV Network was performing flat at Rs486.90 per piece.

Among some of the revised guidelines are - license for the DTH will be issued for 20 years in place of present 10 years. Further the period of License may be renewed by 10 years at a time. Also, the license fee has been revised from 10% of GR to 8% of AGR. AGR will be calculated by deduction of GST from GR.

Furthermore, under the guidelines, DTH operators shall be permitted to operate .to a maximum of 5% of its total channel carrying capacity as permitted platform channels. A one-time non-refundable registration fee of Rs 10,000 per PS channel shall be charged from a DTH operator. Additionally, the cap of 49% FDl in the existing DTH guidelines will be aligned with the extant Government (DPIIT's) policy on FDl as amended from time to time.

The decisions will come into effect as per revised DTH guidelines are issued by the Ministry of Information and Broadcasting.

Related Story

Explore Important Blogs