The government has notified the enhancement of the foreign direct investment (FDI) limit in telecom companies from 49 per cent to 74 per cent and has come up with revised norms, which must be complied with by the end of July.

The government has notified the enhancement of the foreign direct investment (FDI) limit in telecom companies from 49 per cent to 74 per cent and has come up with revised norms, which must be complied with by the end of July. Thereafter, service providers will have to submit compliance reports every six months. While companies can use the automatic route to access FDI up to 49 per cent, they will require Foreign Investment Promotion Board (FIPB) approval to cross the same. The FIPB also has jurisdiction over all investment coming from countries that pose a concern. Moreover, foreign nationals holding top positions (chairman, MD, CEO, CFO) in Indian telecom companies would require security clearance from the Ministry of Home Affairs. Besides, the chief officer in charge of technical network operations and the chief security officer must be resident Indians. The government has also mandated that the majority of directors on a company’s board should be Indian citizens.