Govt issues notification on 100 per cent FDI in telecom sector
The Bharti Airtel shares have been in news because of the ongoing rights issue.
By Deepanshu Bhandari
In another big development for the telecom sector, a notification regarding 100 per cent Foreign Direct Investment (FDI) was issued today. The announcement was made earlier by Union telecom Minister Ashwini Vaishnaw.
The Union Cabinet had allowed 100 per cent FDI in the country’s telecom sector via the automatic route. Till now, only 49 per cent of FDI was allowed through the automatic route and anything beyond it had to mandatorily go through the government route. However, the notification said that all safeguards will apply.
The announcement was made during a media briefing by Union telecom Minister Ashwini Vaishnaw during a press briefing. “In the telecom sector, there was a 100% FDI but only 49% of it was in the automatic route. Today, the cabinet has decided that 100% FDI in telecom via the automatic route has been allowed. All safeguards including press note 3 and others will be applicable,” Vaishnaw said.
Also Read: Cabinet announces AGR breather: Telecom shares spurt – Airtel jumps 6%, Vodafone Idea soars 7%
While the markets, were already aware of the development and the impact of news did not reflect on the price movement of telecom stocks.
Shares of Bharti Airtel today ended at Rs 689.95, down by almost 1.3 per cent or over 9 per cent from the Tuesday closing price.
The Bharti Airtel shares have been in news because of the ongoing rights issue.
Also Read: Bharti Airtel Rights Issue: From record date, timeline to key details - All investors need to know
https://www.zeebiz.com/market-news/news-bharti-airtel-rights-issue-from-record-date-timeline-to-key-details-all-investors-need-to-know-165884Meanwhile, Vodafone Idea Limited shares were down 1.7 per cent and settled at 11.35.
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(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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