Bharti, MTN Chiefs Meet FM Mukherjee

by CXOtoday Staff    Aug 25, 2009

Bharti Airtel Chairman Sunil Mittal and MTN Group Chief Executive Phuthuma Nhleko met Finance Minister Pranab Mukherjee to discuss the proposed merger deal between the two companies.

The meeting was likely to discussion various regulatory issues arising out of the new Foreign Direct Investment (FDI) rules under Press Notes 2, 3 and 4, where the finance ministry’s role would be crucial in getting the deal through.

Both the company heads also met Corporate Affairs Minister Salman Khurshid.

Under the new rules, proportionate foreign holdings through various multi-layered investment companies will not be calculated for the purpose of FDI, as long as Indians hold 51 percent in each of these companies. Earlier, the proportionate foreign holding was calculated at every layer.

Under the new policy, Bharti can bring in more equity through FDI. The new rules, however, have been opposed by the Reserve Bank of India and sections of the government as it is not in consonance with the sectoral caps imposed on various sectors under the earlier rules.