The Telecom Ministry released M&A norms which had been approved by the Empowered Group of Ministers (EGoM) in December 2013. The ministry has retained most of the guidelines and reduced the equity lock-in period of the new entity (in case of M&A) to one year from three years earlier.
Key highlights of Indian Telecom M&A guidelines
If an acquired company holds spectrum which had been assigned against the entry fee paid (not acquired through auction), the resultant company at the time of merger will have to pay the government the differential between the entry fee and the market determined price of spectrum from the date of approval of such arrangement on a pro-rata basis for the balance period of validity of the licence. No separate
