RCom Seeks Easing Of Cross-Holding Norms

To aid the companies that plan to sell equity to the existing telecom operators, Reliance Communications (RCom) has urged the government to ease cross-holding norms.

According to the unified licencing (UL) regime, which was launched in 2013, the telecom service providers cannot hold direct or indirect stakes in incumbents providing services in the same area. The UL regime was put in place to promote healthy competition in the industry and control the possibility of the creation of a telecom cartel.

RCom in its letter to the inter-ministerial group (IMG), demanded that in the case of a merger of companies, the time period to reach the stipulated cap of 50% must be extended to five years. Current norms require that in the case of a merger, the companies must fall under the stipulated cap of 50% within a time frame of a year.

The Anil Ambani-led company also said that the companies availing the strategic debt restructuring scheme of RBI must be treated differently.  

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