Report By Anandita Singh Mankotia, The Financial Express
On Tuesday, the Telecom Commission, the apex body of DoT , on A.Raja's Sugeestion, recommeded a lock-in perios of three yeras on the promoters of new telecom licenses like Swan, Unitech and Datacom before they could sell their equity. However, these companies would be allowed to raise capital through fresh issue of equity shares, subject to no special dividend being payable to stakeholders during the lock-in period.
The provison would not apply to existing players and, therefore, requires an amendment to the terms and conditions of the unified access service license.
However in doing so Raja has clearly over stepped his jurisdiction. Under section 11 of the Trai Act, any ammendment to license conditions first requires mandatory recommendation by the regulator.
Under the provision of section 11, DoT first needs to refer a matter to Trai for recommendation. The regulator then gives its recommendations after a consultative process.
For more detail read The Financial Express of 12th November 2008
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