Sistema's India unit seeks foreign investment limit hike

Sistema Shyam TeleServices Ltd, majority-owned by Russia's Sistema, said on Wednesday that it had sought the government's approval to raise the foreign direct investment limit in the telecommunications carrier beyond 74%.

Govt had last year allowed foreign companies to fully own local telecommunications carriers, removing an earlier cap of 74%. But any stake increase beyond 49% in the telecom sector needs prior government approval.

Sistema and Russia's government together own nearly 74% in the unlisted Sistema Shyam joint venture, while India's Shyam Group has a 24% stake. The rest is owned by individual Indian investors.

A Sistema Shyam spokesman declined to comment beyond the company statement.

According to a copy of Sistema Shyam's application filed in March with the foreign investment regulator and seen by Reuters, the approval will enable conversion of preference shares in the company held by a Sistema unit into equity shares.

Sistema Shyam last year bought new telecommunication permits in an auction after its earlier permits were cancelled by court order on a broader licensing scandal. The company has said it is interested to buy more airwaves in the next auction and would need funding for that.

EDITORIAL OF THE DAY

  • Public musn’t pay for domestic servants for our diplomats

    Nothing seems to have changed in the year and half since the fur that flew thick and fast over the case of diplomat Debjani Khobragade and her maid Sa

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

Economic integration in east Asia

As trade agreements within a global framework have become increasingly ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture