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DoT: Amendment in PMRTS License Agreement for change in FDI norms
The Department of Telecommunications has amended the Public Mobile Radio Trunking Service (PMRTS) License Agreement. Here are the following clauses amended as per the terms and conditions:
Part-1: General conditions
- Ownership of the licensee company
1.1 FDI upto 100% under automatic route subject to observance of licensing and security conditions by licensee as well as investors as notified by the DoT from time to time.
Notwithstanding with the above provision, foreign investment shall be subject to following conditions:
- An entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.
- In the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/ purview of the clause no. (i) above, such subsequent change in beneficial ownership will also require Government approval.
- Both direct and indirect foreign investment in the Licensee Company shall be counted for the purpose of calculating total FDI.
- The licensee Company/ Indian Promoters/ Investment Companies including their holding companies shall comply relevant provisions of extant FDI policy of the Government. While approving the investment proposals, the Government may take into accounts security concerns.
- FDI shall be subject to laws of India and not the laws of the foreign country/countries. The Licensee shall comply with the relevant provisions of FDI policy of the Government and such modifications to the policy as may be issued from time to time.
- The words, mentioned hereinabove in Para 1.1, such as FDI, foreign equity’, investment companies, FIPB, etc., shall have the same meaning as defined by Department for Promotion of Industry and Internal Trade (DPIIT) in its FDI Policy.
This amendment comes into effect with immediate effect. This amendment shall be part and parcel of the PMRTS Agreement and other Terms. Conditions remain unchanged.
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