Sun TV slips as group fails to get approval for FM auctions
Govt’s actions could result in a delay in the FM auctions, industry sources said, as Sun was likely to move court against the decision.
By ET Online |
NEW DELHI: Sun TV Ltd slipped over 4 per cent in intraday trade on Wednesday, after an inter-ministerial panel rejected the Sun Group's application to participate in the next-stage FM channel auctions.
The stock ended the day at Rs 267.40, down 4.23%.
The development also indicates that the licence renewal request of the Chennai-based network's 33 TV channels - hanging fire after home ministry denied them security clearance - could suffer the same fate.
Top government sources told ET that phase 3 FM auctions would go ahead without the Sun Group that operates 45 FM channels under the brand name Suryan FM in Tamil Nadu and Red FM in other cities.
Sun is the only applicant left out from the auctions for lack of security clearance, while two other organisations were rejected on technical grounds, ET said in a report quoting sources.
The decision to go ahead with the FM auction without the Sun Group is learnt to have been made on Tuesday at the Application Review Meeting consisting of representatives of various ministries.
The stock ended the day at Rs 267.40, down 4.23%.
The development also indicates that the licence renewal request of the Chennai-based network's 33 TV channels - hanging fire after home ministry denied them security clearance - could suffer the same fate.
Top government sources told ET that phase 3 FM auctions would go ahead without the Sun Group that operates 45 FM channels under the brand name Suryan FM in Tamil Nadu and Red FM in other cities.
Sun is the only applicant left out from the auctions for lack of security clearance, while two other organisations were rejected on technical grounds, ET said in a report quoting sources.
The decision to go ahead with the FM auction without the Sun Group is learnt to have been made on Tuesday at the Application Review Meeting consisting of representatives of various ministries.
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