Department of Telecommunications (DoT) has issued a notification allowing 100 percent foreign direct investment (FDI) in telecom under the automatic route.
The department further said that foreign investment in telecom services will be subject to the condition of Press Note 3 of 2020.
Accordingly, cases requiring prior government approval under the provisions of Press Note 3 will continue to be in place.
As per the Press Note 3, an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the government route.
Meanwhile, it has been a wild ride for telecom stocks in the recent past. Analysts say optimism on the government's relief package for the ailing sector has driven much of the gains in telecom stocks.
BSE's telecom index has soared 69.9 percent in the past one year, easily beating Sensex's return of 49.6 percent. While Bharti Airtel has risen 62 percent during this period, Vodafone Idea has added 30 percent to its value.
Other players in the pack have also rewarded investors with significant returns. Tata Communications is up 73.2 percent and Indus Towers 72.3 percent, Sterlite Tech 81.4 percent and GTL Infra 160 percent.
(Edited by : Anshul)
First Published: IST