After an Empowered Group of Ministers (EGoM) on Monday recommended a one-time fee on existing operators for spectrum they hold beyond 4.4 MHz, telecom stocks shed up to 4 per cent on the bourses on Tuesday.
Operators wishing not to pay the additional fee would be allowed to relinquish the excess spectrum beyond 4.4 MHz. The one-time fee would be imposed from the day the Cabinet takes a decision on the matter.
Idea Cellular dropped as much as 4 per cent on the Bombay Stock Exchange (BSE), before trading 3.18 per cent lower at Rs 82.10 in noon trade.
Bharti Airtel was also trading in red, down 1.35 per cent at Rs 266.50.
Reliance Communications was down 1.51 per cent at Rs 62.15.
"The move will negatively impact incumbent players that are not hit by a Supreme Court order to revoke permits in a scandal-tainted 2008 sale and are not required to bid in the auction," Angel Broking said in a report.
The Supreme Court in February had cancelled 122 licences granted during former Telecom Minister A Raja's regime.
In the broader market,
BSE Sensex was trading 109.97 points, or 0.59 per cent, higher 18,818.95.
With inputs from PTIDisclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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