Many had slammed the MSCI for pruning Airtel’s weight instead of increasing it, citing the approval to hike
to 100 per cent in the telecom operator.
“MSCI is aware of the government approval to increase the foreign ownership limit in Bharti Airtel
to 100 per cent, announced at the beginning of 2020. However, MSCI is not aware of any public information on the potential effective date of this change," MSCI had said back then.
Market players say the regulator Securities and Exchange Board of India (Sebi) should probe the matter.
“Some elements in the market are taking advantage of the ambiguity around Airtel’s FPI limit. Sebi
should check if anyone is making wrongful gains out of this,” said a market expert.
This leads to the question — what is the actual FPI cap in Airtel at present?
While Airtel has hiked the limit to 100 per cent in principle, the company needs to address some issues on overseas investment limits in subsidiaries, before the changes come into effect. Until then, the cap on foreign ownership will remain at 49 per cent under the automatic route, and it could go beyond 49 per cent under the government approval route.
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