Govt imposes 3-year lock-in for telcos
New Delhi: The founders and large shareholders of telecom companies can not sell their equity during the first three years of their licence, the government said, after a raft of stake sales by some new telecom licensees to foreign firms last year.
"There shall be a lock-in-period for sale of equity of a person whose share capital is 10 percent or more," the government said in a statement.
Companies can, however, sell new shares by way of private placement or public issues during the period, it said.
Foreign telecoms firms such as Telenor and Etisalat last year bought stakes in India`s nascent licensees at many times the price the firms had paid to acquire the permit.
This had prompted the telecoms regulator to recommend a three-year lock in for founder`s equity and any sale within that period needed government approval.
More from India
More from World
More from Sports
More from Entertaiment
- DNA: Importance of viewers' comments and remarks on reported news
- DNA: Has PM Modi's mention of Balochistan during I-Day speech unsettled China?
- DNA: Why commuting by bus in India is an unpleasant experience
- DNA: Elderly couple forced to live separately after 62 years; images go viral
- DNA: Unhappy with stint in Rio, Kim Jong-un announces penalty for North Korean olympians
- NASA astronaut Jeff Williams' camera zooms in on alluring views of these two places! - See pics
- Nico Rosberg surprised to see teammate Lewis Hamilton finishing 3rd in Belgian GP
- See pic: Cassini captures delicate glow on Saturn's ring!
- Mamata urges people to oppose strike, government warns absentees of action
- India, Myanmar agree to increase bilateral cooperation