DoT issues 3yr lock-in for telecos

NEW DELHI, INDIA: Department of Telecommunication (DoT) has imposed a three-year lock-in clause on sale of equity of Unified Access Services (UAS) by the owners of telecom companies, which were granted telecom licenses last year.

This would prevent the promoters of the six international telecom players, such as Swan (Etisalat DB), Sistema Shyam, Datacom, STel, Loop and Unitech, who obtained telecom license last year, from selling off stakes to foreign companies.

However, DoT has maintained that the lock-in period will not apply to agreements already entered into and also that issue of additional equity share capital by the UAS licensee company by way of private placement/ public issues is also permitted.