NEW DELHI: India's foreign investment regulator deferred a decision on Vodafone Group Plc's proposal to take full ownership of its Indian unit in a $1.6 billion deal, two government officials said on Monday.
The regulator deferred the decision as it had not received security approvals from the home ministry, one of the officials said. Both the officials refused to be named as they were not authorized to speak to media.
Vodafone, which entered India in 2007 by buying Hutchison Whampoa's local cellular assets in an $11 billion deal, directly and indirectly owns a combined 84.5 per cent of Vodafone India, the country's No. 2 telecoms company by users.
Vodafone directly owns 64.38 per cent of the India unit.
The regulator deferred the decision as it had not received security approvals from the home ministry, one of the officials said. Both the officials refused to be named as they were not authorized to speak to media.
In August, India relaxed rules on foreign holdings in the sector to allow companies such as Vodafone to own 100 per cent of their Indian businesses.
Before the rule change, foreign companies were limited to direct stakes of no more than 74 per cent in Indian carriers.
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