Bharti set to raise FDI limit to 74%

Bharti Tele-Ventures has proposed to raise the foreign direct investment (FDI) ceiling to 74 per cent from the present 49 per cent. The private telephony major has placed a special resolution seeking shareholders' permission.

In a letter to shareholders, Bharti said the move was "to comply with the terms and conditions incorporated in the licence agreement by DoT."

The government through the press note 5 (2005 series) dated November 3, 2005 has enhanced the FDI ceiling from 49 per cent to 74 per cent in telecom.

The company is also mulling over amending its 'Article of Association', which states the maximum number of directors cannot exceed 18, so that it can induct three more members.

"To comply with the listing agreement requirement, FDI guidelines, other statutory requirements and shareholder agreements, the company is required to broaden its base. It is, therefore, proposed to amend article 117(a) of the Article of Association to increase the existing limit of 18 to 21."

The existing article will be replaced by a new one, which would state that the company's management will comprise not less than eight and not more than 21 directors, "unless a greater number is required for legal, regulatory, listing requirements or to meet the provisions of the shareholder agreement".