SEBI Approves Airtel and Telenor Merger
Bharti Airtel has stated that it has got approvals from the Securities and Exchange Board of India (SEBI), Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) for the proposed scheme of merger with Telenor (India) Communications Private Ltd. Bharti Airtel now has filed the joint company application before the New Delhi Bench of the National Company Law Tribunal for approval. Bharti Airtel had announced its proposed merger with Telenor South Asia Investments Pte Ltd in February.
The merger will transfer all of Telenor India’s assets and customers and thus augmenting Airtel’s overall customer base and network.
The merger is also subject to other statutory approvals like that of the Competition Commission of India.
The merger will further bolster Airtel’s strong spectrum foot-print in seven circles including Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These seven circles with a huge population concentration will offer a high potential for growth. It will result in the addition of 43.4 MHz spectrum in the 1800 MHz band.
Securities and Exchange Board of India (SEBI) was established in 1988. It got statutory mandate and powers under the SEBI Act, 1992. Its objective is to protect the interests of investors in securities and to promote the development and regulation of securities market.
The Key functions of SEBI are to regulate stock exchanges and other securities markets; registering and regulating the working of intermediaries who are associated with securities markets in any manner; Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds; promoting and regulating self-regulatory organizations and prohibiting fraudulent and unfair trade practices relating to securities markets.