Moneycontrol Bureau
Investors continued to buy shares of telecom stocks Tuesday on reports that the Narendra Modi-led government is planning a new super regulator for the communications sector. Shares of top telecom operators Bharti Airtel and Idea Cellular gained more than 4 percent intraday while rivals Reliance Communications and Tata Teleservices gained 3-3.5 percent.
New regulator will be called as Communications Commission, which may replace Telecom Regulatory Authority of India (TRAI), sources told CNBC-TV18.
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) may also get replaced by Communications Appellate Tribunal, sources add.
The Communications Bill seeks to replace all old and redundant legislations which include the Telegraph Act and TRAI Act. As far the constitution of the new body is concerned, the Bill proposes a 6-member regulator with one Chairman, who will have 5-year tenure. The member will include one each from sectors like telecom, broadcasting, finance, management, accountancy and either law or consumer affairs.
Moreover, the bill also seeks to replace TDSAT with a new appellate body called the Communications Appellate Tribunal, which will have 3 members and a Chairman. According to sources, this tribunal will also have the power to oversee dispute resolution.
The Communication Commission will be the over arching regulator. It will retain the functions and the powers TRAI enjoys, but will also meddle with affairs of some of the other regulators such as the Censor Board, some clearances that the Ministry Of Environment gives out, the Competition Commission of India and the Department of Telecommunications.
At 12:29 hours IST, the scrip of Bharti Airtel rose 3.55 percent to Rs 389.30 and Idea Cellular climbed 4.06 percent to Rs 174.20 while Reliance Communications was up 2.08 percent at Rs 120.45 and Tata Teleservices (Maharashtra) advanced 1.15 percent to Rs 11.39 on the Bombay Stock Exchange.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
