Govt rejects Russian Sistema’s FDI proposal
25 Oct 2014 10:26 PM GMT
The Finance Ministry has rejected Sistema Shyam Teleservices' (SSTL) proposal to increase foreign stake to 100 per cent due to conversion of redeemable preference shares into equity. SSTL, controlled by Russian conglomerate Sistema JSFC, had applied in May to increase the total FDI in the company beyond 73.95 per cent.
Increases in FDI up to 100 per cent in Sistema Shyam Tele Services Limited and its downstream WoS Shyam Internet Services Limited, both engaged in telecom sector, on account of conversion of Redeemable Preference Shares into equity have been rejected, the Foreign Investment Promotion Board (FIPB), a multi-department panel headed by Finance Secretary, said in a statement.
The meeting of FIPB took place on 16 September.
Sistema JSFC holds 56.68 per cent in SSTL, Russian government 17.14 per cent and 0.13 per cent other foreign entities.
The government in July 2013 had allowed 100 per cent FDI in telecom companies. SSTL, which offers services under MTS brand name, has a presence in nine telecom circles.
Increases in FDI up to 100 per cent in Sistema Shyam Tele Services Limited and its downstream WoS Shyam Internet Services Limited, both engaged in telecom sector, on account of conversion of Redeemable Preference Shares into equity have been rejected, the Foreign Investment Promotion Board (FIPB), a multi-department panel headed by Finance Secretary, said in a statement.
The meeting of FIPB took place on 16 September.
Sistema JSFC holds 56.68 per cent in SSTL, Russian government 17.14 per cent and 0.13 per cent other foreign entities.
The government in July 2013 had allowed 100 per cent FDI in telecom companies. SSTL, which offers services under MTS brand name, has a presence in nine telecom circles.
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