FIPB clears Vodafone deal to buy Hutch-Essar

New Delhi, Apr 27 (UNI) The Foreign Investment Promotion Board (FIPB) today cleared the British telecom giant Vodafone's deal to buy mobile carrier Hutchison Essar after deferring a ruling thrice.

This will be now be placed before the Finance Ministry for a formal and final approval.

The only clause from FIPB is that the British company has to comply with Press Note three of the Foreign Direct Investment (FDI) rules which is presently capped at 74 per cent.

Also, FIPB has ruled that the 15 per cent stake held by Indians Analjit Singh and Ashim Ghosh and FIs cannot be transferred.

Earlier, in the last three meeting the Board had had sought more details about the deal, particularly the size of the foreign holding in the firm.

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