It is understood that the government has asked the Reserve Bank of India to explore possible options in this regard. Although the idea has been around for quite some time, this is the first time that concrete steps have been initiated to move the proposal ahead.

This move could clearly entail liberalisation in the exchange control regulations, particularly to foreign entities. To make this happen, RBI will not have to totally dismantle the present exchange control regulations or usher in full convertibility to transform Mumbai into an international financial centre.

People draw parallel to the eurodollar market developed in London which made it a nerve centre of the international financial markets, while the city’s exchange control regime remains still restricted as it is in India.

It is also understood that a RBI team, led by one of the bank’s executive directors, will visit some of the Asian financial centres, like Hong Kong, Singapore and Shanghai to take a close look at the systems.
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Mid-Day and Star in combat over use of Radio One brand name
Mumbai: The first wars of the privatised FM radio seems to have begun. Star India, which was to have launched its FM services under the Radio One brand name, has already got into legal problems.

It is understood that Mid-Day Multimedia has challenged Music Broadcast Private Limited, the Star India entity for the purpose, on its right to use the brand name Radio One since it (Mid-Day) owns the copyright to the name. MBPL is a joint venture between Star India and promoted by PK Mittal.

Radio One, as a Mid-Day owned copyright, started programmes on New Delhi’s FM station in 1995. The issue assumes significance, since MBPL is scheduled to launch the first private FM station in Bangalore on June 29.

In the meantime, a landmark agreement has been signed between the Indian Performing Rights Society (IPRS) and MBPL for copyright charges of the Bangalore FM radio station. Under this agreement, the first of its kind in the country, MBPL will pay a royalty fee depending on the amount of music used from each of its radio stations across the country. The peak rate for this deal will be Rs 250 per hour for prime-time, with lower costs for non-prime time. Industry observers point out that prime- time on radio is generally between 9 AM and 10 AM.

The IPRS is a body that comprises music companies, lyricists and composers. "The development augurs well for the music companies and will kick off the era of broadcasting" said Mr Tandon.
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Star TV to stay away from DD Metro slots
Mumbai: Even as its competitors are gunning for the prime-time band slots put on the block by Doordarshan, Star TV has decided to stay away from the bidding for slots in DD Metro. The bids, which open on June 18, are for the 7 pm-12:30 am band.

According to Star TV officials with several of its programs doing well, the channel envisages a conflict of interest between promoting their own programs and marketing DD Metro slots.

It is understood that television majors like Zee and Sony are going to battle it out for the prime time band of 7 pm to 9 pm.

The minimum floor price for the 7 pm - 8 pm slot is pegged at Rs 22.5 crore, 8 pm – 9 pm band at Rs 32.5 crore, 9 pm - 10 pm at Rs 42.5 crore.

No minimum guarantee has been fixed for the 11pm-12:30 am slot. Free Commercial Time of up to 600 seconds per day would be on offer to successful bidders. There would be a 10 per cent increment on the bid amount on an annual basis.
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