EXCLUSIVE: Broadcast audit overhaul imminent as TRAI plans notification in coming weeks

The Telecom Regulatory Authority of India (TRAI) is set to notify amendments to the audit framework governing the broadcasting and cable distribution sector within the next few weeks, signalling a key regulatory intervention aimed at tightening compliance and aligning reporting cycles with the financial year.

The amendments are part of the draft Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Seventh Amendment) Regulations, 2025, which propose significant changes to audit timelines, reporting obligations and oversight of subscriber data across the television distribution ecosystem.

TRAI chairman Anil Kumar Lahoti said the regulator is in the final stages of issuing the regulations. “On the broadcasting, on the audit-related provisions, we will be coming out with the regulation, I think, within the next few weeks,” Lahoti told Storyboard18, indicating that the authority intends to move ahead with the audit reforms despite opposition from industry bodies.

Shift to financial-year-based audits

At the core of the proposed amendments is a move to align mandatory audits with the financial year, replacing the existing calendar-year system. Under the draft framework, distributors of television channels—including multi-system operators (MSOs), DTH operators and IPTV providers—will be required to conduct annual audits of their subscriber management systems (SMS), conditional access systems (CAS) and digital rights management (DRM) platforms for the preceding financial year.

The audit reports will need to be shared with broadcasters having interconnection agreements by September 30 every year. According to TRAI, the revised cycle is intended to bring consistency with financial reporting, taxation and contractual processes, while reducing ambiguity created by the calendar-year audit mechanism.

The regulator has argued that a uniform financial-year-based audit regime will improve transparency in subscriber declarations and revenue sharing, long-standing friction points between broadcasters and distribution platform operators (DPOs).

Industry pushback on process and scope

However, the proposed audit amendments have drawn strong resistance from major broadcasting industry bodies, including the Indian Broadcasting and Digital Foundation (IBDF) and the News Broadcasters and Digital Association (NBDA).

The associations have described the draft regulations as “procedurally improper” and “substantively regressive,” urging TRAI to withdraw the proposal and subsume it under a broader, comprehensive review of the broadcasting regulatory framework.

IBDF and NBDA have objected to what they describe as a fragmented approach, with audit regulations, the audit manual and infrastructure sharing provisions being amended separately. According to IBDF, this piecemeal process creates regulatory uncertainty and prevents stakeholders from fully assessing the cumulative impact of the changes.

The broadcasters have also pointed out that during a stakeholder meeting in February 2025, TRAI had indicated that such issues would be taken up as part of a holistic review rather than through standalone amendments.

Despite these objections, TRAI’s latest comments suggest the regulator is pressing ahead with the audit-related changes as a priority.

Advertising cap enforcement

Separately, Lahoti reiterated that television broadcasters remain bound by the existing 10+2 minute advertising cap—10 minutes of commercial advertising plus two minutes of self-promotion per clock hour—stating that there is no judicial stay on the Ministry of Information and Broadcasting (MIB) rules or the corresponding TRAI regulations.

“As far as the law of the country goes as on date, the MIB rule puts a 10 plus 2 limit on advertising, and there is a TRAI regulation which interprets how it is to be applied,” Lahoti said, adding that while the rules are under legal challenge, compliance remains mandatory.

He also defended TRAI’s recent issuance of show-cause notices to several television channels for allegedly breaching advertising limits, noting that the regulator had conducted audits to assess compliance. While the Delhi High Court has barred coercive action against certain petitioning broadcasters, Lahoti clarified that channels not covered by that protection remain subject to enforcement.

D2M broadcasting

On direct-to-mobile (D2M) broadcasting, Lahoti said TRAI has not yet received a formal reference from the Ministry of Information and Broadcasting. “What I understand is that they are undertaking some pilot. We will examine the issue if we receive a reference,” he said.