Essar stake sale to Vodafone may run into FIPB roadblock

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Essar stake sale to Vodafone may run into FIPB roadblock

Essar's 22.04% stake sale to Vodafone may run into an Foreign Investment Promotion Board (FIPB) roadblock, reports CNBC-TV18 quoting sources.

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Essar 's 22.04% stake sale to Vodafone may run into an Foreign Investment Promotion Board (FIPB) roadblock, reports CNBC-TV18 quoting sources.

The department of telecommunication (DoT) has said that even though it is a stake sale between two non-resident entities-Vodafone and Essar's off shore entity-the deal should get FIPB approval. (Did you read: Penalty to be imposed on Hutchison Essar for PTT services )

The department of industrial policy and promotion (DIPP) has also observed that non-resident transactions under approval route require FIPB approval.

FIPB will discuss this, as well as Essar's 5.5% stake sale to Prime Metals on September 2.

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