DoT imposes a lock-in period of 3 years (India)

www.WirelessFederation.com/news: The Department of Telecommunications, DoT, has decided to impose a 3 year lock in period on the equity stake held by promoters of new telecom companies. The Government has notified that a UAS (Universal Access Service) Licence holder will have a lock-in period of three years or till the fulfilment of all the roll-out obligations, whichever is earlier, before promoters can sell their equity stake.
“There shall be a lock-in-period for sale of equity of a person whose share capital is 10 per cent or more in the UAS licencee company on the effective date of UAS licence and whose net-worth has been taken into consideration for determining the eligibility for grant of UAS licence, till completion of three years from the effective date of the UAS licence or till fulfillment of all the roll-out obligations under clause 34, whichever is earlier,” the Government said.

“In case of issue of fresh equity, within the lock-in period the declaration of dividend and/or special dividend shall be barred,” DoT said. “The provision of lock-in period shall not apply, in pursuance to enforcement of pledge by the lending financial institutions/bank in the event of defaults committed by the UAS licencee company.”