Reform commission proposes capital market listing for medium, large media outlets

Media Reform Commission believes an ordinance can be issued to ban cross-ownership in the sector

The Media Reform Commission has recommended that medium and large media outlets be required to list their shares in the stock market within a specified timeframe.

The proposal also suggests setting a maximum shareholding limit for these companies similar to the banking sector.

The commission, headed by Kamal Ahmed, presented the report to Chief Advisor Muhammad Yunus at the State Guest House Jamuna on Saturday.

The report recommends that the maximum shareholding limit for entrepreneurs, directors, individuals, institutions, companies, or members of the same family be restricted to 25 percent.

It outlines that in the banking sector, an individual, institution, company, or family members cannot hold more than 10 percent of shares.

It further notes that only three members of the same family can serve on the board of directors at any given time.

"However, no such requirement exists in media institutions. A change is therefore needed," the report reads.

The proposal suggests a mandatory share distribution among the company's employees, with a maximum limit of 5 percent for each employee to prevent entrepreneurs from gaining full control by working with staff members.

It also says small media companies may be required to distribute shares to employees.

The report highlights that many individuals and institutions in the country own multiple media outlets.

It also points out that cross-ownership is prohibited in several countries.

In India, a bill addressing this issue is currently awaiting discussion in parliament.

The report says, “In our country, a similar decision and notification were issued for private television channel approvals, as said by former information minister Abu Sayeed in a written statement to the Media Reform Commission.

“The notification, however, could not be found in the ministry's records. It is clear that successive governments have not followed that policy.”

The commission has emphasised the need for immediate steps, recommending that an ordinance be issued to ban cross-ownership.

It has also suggested setting a deadline for businesses involved in cross-ownership to restructure their operations. Different methods could be adopted for this restructuring.

The report says, "Companies/groups/institutions/individuals/families that own both television and newspaper outlets may transfer ownership of one medium and sell the others.

“Alternatively, they can combine journalists and staff from both media (television and newspaper) to manage a more powerful and larger media outlet (television or daily newspaper)."