Trai proposal puts liability burden on sellers in telecom M&A deals

Experts are of the view that these reforms are too little, too late

In a bid to reform the merger norms for telecom licences, the Telecom Regulatory Authority of India (Trai) on Friday suggested that liabilities arising out of a deal would be the seller’s responsibility, as opposed to the buyer’s currently.

These recommendations are expected to streamline the merger & acquisition process and settle legal disputes in the telecom sector.

Though Trai may consider it a reformative step, experts are of the view that with only three private telecom players in the market, these reforms are too little, too late. Too few players mean barely any scope for mergers and acquisitions.

“These definitions and separation