The Telecom Regulatory Authority of India on Thursday recommended to the Department of Telecommunications (DoT) that it should clear a merger proposal within 30 days of it being cleared by the National Company Law Tribunal (NCLT). It also said if DoT has any objections to any merger or acquisition proposal, it should file its objections within the stipulated window of 30 days after it is notified about it by the tribunal.
Trai’s recommendations are part of ease of doing business in the telecom sector and once the government accepts them, the pace of M&A transactions getting completed would quicken.
“In the past, it has been noticed that the written approval for merger of service licences from the licensor (DoT) sometimes takes a very long time. Such considerable delays could also hamper the benefits of synergies through merger,” Trai explained.
Besides, the regulator suggested that in case the spectrum holding of a merged entity is in excess of the permissible limits, it should be allowed to surrender or trade the excess airwaves within a year. FE