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DoT amends MNP license agreement for FDI in Telecom

The Department of Telecommunications (DoT) has amended the Mobile Number Portability (MNP) license agreement for change in FDI in the telecom sector, DoT stated in an official circular.

“The Licensor reserves the right to modify at any time the terms and conditions of the License, if in the opinion of the Licensor it is necessary or expedient to do so in public interest or in the interest of the security of the State or for the proper conduct of the service,” the circular stated.

The amended clauses are as stated:

Existing Clause Amended Clause
PART-II, COMMERCIAL CONDITIONS, Ownership of the Licensee Company

 

 9.1 FDI upto 100% with 49% under automatic route and beyond 49% through Government route subject to observance of licensing and security conditions by the Bidder Company as well as investors as notified by the DoT from time to time.

9.2 Both direct and indirect foreign investment in the Bidding Company shall be counted for the purpose of calculating total FDI.

9.3  The Bidder Company/ Indian Promoters/Investment Companies including their holding companies shall comply with the relevant provisions of extant FDI policy of the Government of India. While approving the investment proposals, the Government  will   take into account security concerns.

9.4 FM shall be subject to the laws of India and not the laws of the foreign country/countries. The Bidder Company shall comply with the relevant provisions of the extant FDI policy of the Government of India and such modifications to the policy as may be issued from time to time.

9.5 The words, mentioned hereinabove, such as FDI, foreign equity, investment  companies etc. shall have the same meaning as defined by the Department of Investment & Industrial Policy (DIPP) in its extant FDI Policy.

 

 

PART-II, COMMERCIAL CONDITIONS, Ownership of the Licensee Company

 

 9.1 FDI upto 100% under automatic route subject to observance of licensing and   security conditions by Bidder Company 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:

9.1(i) 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.

9.1 (ii) 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. 9.1 (i) above, such subsequent change in beneficial ownership will also require Government approval.

9.2 Both direct and indirect foreign investment in the Bidding Company shall be counted for the purpose of calculating total FDI.

9.3 The  Bidder  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.

9.4 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.

9.5 The words, mentioned hereinabove, such as FDI, foreign equity, investment companies, etc.,  shall have the same meaning as defined by Department for Promotion of Industry and Internal Trade (DPIIT) in its FDI Policy.


CT Bureau

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