The stock gained 3.4 per cent to Rs 342.35 after the Reserve Bank of India made a concession in the foreign borrowings policy for telecom companies seeking to fund their acquisition of third generation (3G) spectrum.
The banking regulator allowed telecom companies to avail of external commercial borrowings (ECB) for the payment for spectrum allocation. This modification, which comes into force with immediate effect, comes a year after funding 3G spectrum was classified an eligible end-use for external borrowing.
But the much-awaited 3G spectrum auction may be delayed beyond the scheduled date of 14 January 2010 due to uncertainty over the available spectrum and the number of slots to be put up for bidding.