FIPB rejects Sistema's share transfer proposal

Inter-ministerial body FIPB has rejected a proposal by Sistema Shyam TeleServices for exit of resident shareholders in the company and transfer of their holdings to existing foreign shareholders.

In all, the Foreign Investment Promotion Board (FIPB) rejected four foreign investment proposals and deferred decision on five applications.

Sistema Shyam TeleServices had sought FIPB nod for the exit of resident shareholders and transfer of their holdings to existing foreign shareholders -- M/s Sistema Joint Stock Financial Corporation, Russia and Federal Agency for the State Property Management (Rosimushchestvo), FIPB said.

The approval would have resulted in increasing of the foreign shareholding in the company from 73.95 per cent to 100 per cent and consequently, hike in foreign shareholding in its downstream company Shyam Internet Services Ltd to 100 per cent.