The Department of Telecommunications (DoT) has imposed a three-year lock-in clause on the sale of stake by owners of telecom companies that had been granted telecom licences in 2008.

The move is aimed at preventing the promoters of these companies from making windfall gains by selling stakes to foreign companies. The restriction will be imposed from the date the licence was granted. The lock-in clause will, however, not impact the agreements already entered into by companies such as Swan, S Tel and Unitech Wireless, as they have been allowed to issue fresh equity shares through private placement or public issues.

The lock-in period will not be applicable in cases where a bank or financial institution sells shares pledged by a telecom company as collateral against risk of default.