RBI views not mandatory for clearing Hutch-Vodafone deal
The Foreign Investment Promotion Board can grant clearance to the Hutch-Vodafone deal even without the nod of Reserve Bank, which can independently look into FEMA violations, if any.
By PTI |
NEW DELHI: The Foreign Investment Promotion Board can grant clearance to the Hutch-Vodafone deal even without the nod of Reserve Bank, which can independently look into FEMA violations, if any.
The deal, however, still needs to be vetted by the Home Ministry from the security angle and the Law Ministry on the legal aspect relating to FDI compliance.
The Foreign Investment Promotion Board, which would take a call on the deal on April 23, has already provided details of buyer Vodafone's global operations to the Home Ministry.
Earlier, Hong Kong-based Hutchison Telecom International, which sold its controlling stake in Hutch-Essar to Vodafone, gave its submission on the share purchase framework agreement to the foreign investment regulator.
Besides, it provided details of shareholder agreement and the loan agreement between Rabo India and the minority shareholders -- Asim Ghosh and Analjit Singh -- to whom HTIL stood as guarantor.
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Sources said RBI's views were no longer necessary, as the banking regulator can go ahead with its investigation on the alleged violations separately.In its submission, HTIL also argued that the minority shareholding of 12.26 per cent held by Singh and Ghosh should be considered as Indian holding and HTIL standing guarantee to it does not change the ownership.
FIPB is now asking all ministries linked to the Hutch- Vodafone decision to come out with views instead of transferring the entire responsibility to the Board.
It will be a collective decision of all the members including Department of Telecom, Department of Industrial Policy and Promotion and Ministry of External Affairs, besides Law Ministry.
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