Crossholding in same telecom circle may go

The Department of Telecommunications (DoT) is working on a proposal to disallow crossholding by one telecom firm in a competing one in the same circle. Under the current rules, a promoter in a telco can acquire up to 9.9 per cent stake in another in the same circle. The scrapping of the clause could have a far-reaching impact on many equity investments made by foreign companies, such as Vodafone, which has a stake in Bharti Airtel. It would also bring to close a controversial clause that has led to investigations about alleged violations, as well as battles between promoters.

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