The Department of Telecom will drop the three-year mandatory lock-in period for promoters of telecom companies under the new mergers and acquisition rules.
The lock-in period was introduced to prevent fly-by-night players from making windfall gains by selling spectrum at market price after acquiring spectrum from the Government under the first-come-first-served policy.
But since fresh spectrum allocation is being done only through auction and older players who had got spectrum under the earlier dispensation have completed more than three years, the DoT has decided that the lock-in period was not necessary.
“Further lock-in condition may hamper the progress and roll out of capital intensive telecom projects as shareholders may not be able to invest further equity,” stated the draft M&A norms being finalised by the DoT.
Industry representatives, however, said removing the lock-in period alone will not be enough to spur consolidation in the telecom sector.
Source: http://cablequest.org/news/telecom-news/item/3394-dot-to-drop-lock-in-period-for-telecom-stake-sale.html
Source: http://cablequest.org/news/telecom-news/item/3394-dot-to-drop-lock-in-period-for-telecom-stake-sale.html
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