The FIPB has cleared Vodafone's proposal to acquire 52 per cent stake in HEL. It noted that the controversial 15 per cent shareholding in HEL is owned by Indians and hence, the foreign holding in the company will remain below 74 per cent after the deal. This is in compliance with Press Note 3 of 2007, according to which the foreign direct and indirect shareholding in a telecom company cannot exceed 74 per cent of the paid-up capital. However, the minority shareholders cannot sell their stakes to a foreign entity without prior government approval. Earlier, while the law ministry had cleared Vodafone's acquisition of HEL, it had pointed out that Vodafone would not be permitted to fix the price of the 12.26 per cent stake held by Analjit Singh and Asim Ghosh in HEL. According to the ministry, Indian foreign exchange management laws do not allow international companies to use predetermined pricing formulae to buy out their Indian partners.