The government today allowed telecom companies to raise money by issuing fresh shares - either through private placement or public issue - but barred them from selling stake for a period of three years.
"There shall be a lock-in-period for sale of equity of a person whose share capital is 10 per cent or more in the company on the effective date of Unified Access Service (UAS) licence till completion of three years or till fulfillment of all the roll-out obligations, whichever is earlier," the Department of Telecom (DoT) said in a statement.
Issue of additional equity share capital by the company by way of private placement or public issue is permitted, DoT said adding that "However, such a person (on whom lock-in condition applies) shall not transfer in any manner such as sale, assignment etc, his share capital directly or indirectly to any other person during lock-in period."
The issue of lock-in period was raised after two new telecom companies Unitech and Swan had inducted foreign partners at huge premium even as the companies had said that it did not involve sale of equity. They had issued fresh capital to raise money to roll out networks.
The DoT has accordingly amended the UAS licence agreements with all the telecom companies.