Just days after NDTV reported that Hutch-Vodafone deal is set to sail through, Foreign Investment Promotion Board (FIPB) on Friday cleared Vodafone’s buyout of Hutch’s Indian operations.
However the deal must comply with press note 3 and minimum 15 per cent stake in the new entity has to be held by Indians. FIPB will be sending the file to the Finance Ministry for further clearance.
FIPB made it clear that Asim Ghosh, MD, Hutchison-Essar and Max Group Chairman Analjit Singh cannot sell stake to foreign companies. However, Asim Ghosh maintained that riders of the FIPB’s decision are of least concern and expressed confidence of not breaking any law.
Ahead of the crucial FIPB meeting on Friday, NDTV on Wednesday reported that FIPB will clear the deal but with a rider asking Asim Ghosh and Analjit Singh to offload some stake.
With the recent controversy about the shareholding patterns in the Hutchison Essar Telecom, FIPB also asked the government to review Foreign Direct Investments (FDI) across all the sectors and plug the loopholes.
